[Click e-Stock] "Hecto Innovation Acquires Walletone... Synergy Expected"

Eugene Investment & Securities analyzed on September 8 that synergy effects among affiliates are expected for Hecto Innovation through the acquisition of Walletone. The company maintained its "Buy" investment rating and a target price of 21,000 won.

On September 3, Hecto Innovation announced that it had decided to acquire a 47.15% stake in Walletone, a company specializing in blockchain wallets, for approximately 9.29 billion won. Upon completion of the acquisition, Hecto Innovation will become the largest shareholder of Walletone.

Walletone is a company with strong recognition in the blockchain wallet and infrastructure sector. It has secured major references, including the Shinhan Bank NFT (non-fungible token) user wallet service, NFT data management for Modern Lion, a subsidiary of Hyundai Card, NFT-based digital certificates for Shinsegae I&C, and the Starbucks NFT project.

Park Jongseon, a researcher at Eugene Investment & Securities, stated, "By combining Hecto Innovation's existing business track record in mobile phone number security authentication and PASS with Walletone's wallet technology, the company has secured the potential for new business expansion." He added, "We also expect synergy effects by adding wallet services to the B2C platform services currently being developed." He further noted, "If stablecoin legislation is enacted in the future, demand for personal wallets is expected to grow rapidly."

Synergy effects with Hecto Financial are also anticipated. Park emphasized, "Hecto Financial's main businesses include banking services linked to networks of 23 domestic banks, payment gateway services, and foreign exchange services. The company also excels in regulatory compliance capabilities, such as anti-money laundering (AML) and fraud detection systems (FDS)."

He continued, "Regulations such as AML and FDS can be a significant advantage for stablecoin commercialization in the existing virtual asset sector, including wallet service providers. With 400,000 affiliated merchants, banks, card companies, and a global network, we expect synergy effects in various business developments."