[Click eStock] "NHN KCP, Undervalued with Stable Performance"

Shinhan Investment Corp. analyzed on the 19th that NHN KCP is in an undervalued range despite being supported by stable performance. The investment opinion 'Buy' and the target price of 11,500 KRW were maintained.

Hyunwoo Park, a researcher at Shinhan Investment Corp., stated, "The domestic online shopping transaction amount in the third quarter increased by only 3% compared to the same period last year, showing a slowdown in growth," but he evaluated that "NHN KCP performed well with an 11% increase centered on large domestic and overseas merchants."

He added, "The PG transaction amount in the fourth quarter is estimated at 12.8 trillion KRW, and it is expected to maintain a better-than-industry trend mainly in fashion and travel, which benefit from seasonal factors," and "They are steadily making efforts to attract merchants by securing customers such as secondhand trading and duty-free shops this year."

Shinhan Investment Corp. forecasted that NHN KCP will record sales of 288.4 billion KRW and operating profit of 12.7 billion KRW in the fourth quarter, increasing by 7.5% and 2.6% respectively compared to the same period last year. He said, "This reflects a slight margin decline due to the increased proportion of large merchants," and "The disappearance of bonuses and one-time bad debts from the previous quarter will act as a factor stabilizing costs."

He explained, "Despite the recent stock price rebound, the estimated price-to-earnings ratio (PER) for 2025 is 7.7 times, indicating minimal valuation burden," and "Considering the improvement in consumer spending due to reduced non-consumption expenditure following interest rate cuts and the relative recovery of goods demand, a gradual rebound in online shopping is expected."