[Click e-Stock] "Naver's Operating Profit Could Grow Over 60% If Combined With Dunamu"

"Securing Long-Term Growth Drivers"
Buy Rating and Target Price Maintained

On October 10, Daishin Securities maintained its "Buy" investment rating and a target price of 330,000 won for Naver, stating, "If Dunamu is incorporated as a subsidiary and its consolidated performance is reflected, next year's revenue could grow by more than 20%, and operating profit could increase by over 60%."

Lee Jieun, a researcher at Daishin Securities, commented, "Although Naver is expanding its business in advertising and commerce through the recent adoption of artificial intelligence (AI) and the launch of new applications, growth in its core business remains limited. In this context, if Dunamu is incorporated, it could enable Naver to improve its performance." She also pointed out that net profit will depend on the stake Naver secures in Dunamu.

Lee analyzed that this deal is more about securing long-term growth drivers and strengthening leadership than about short-term performance improvement. She explained that Naver Financial could lay the foundation to expand beyond its current payment-focused business structure into the broader financial sector, and if Chairman Song Chi-hyung becomes the largest shareholder, it could establish a strong leadership system in digital assets and fintech, thereby boosting momentum for new business initiatives.

Lee Jieun added, "Naver is now in a phase where its stock price is expected to rise, reflecting mid- to long-term growth potential and structural transformation rather than short-term momentum."

Meanwhile, Naver's consolidated revenue for the third quarter of this year is expected to reach 3.0602 trillion won, up 12.7% year-on-year, and operating profit is forecast at 554.7 billion won, an increase of 5.6%. While revenue is in line with market consensus, operating profit is expected to slightly fall short due to increased costs related to commerce.

By segment, revenue from the search platform business is projected to be 1.0371 trillion won (up 3.9% year-on-year), showing stability, but advertising growth continues to slow. In contrast, the commerce segment is expected to post significant growth at 947.7 billion won (up 30.6%). The increase in advertising unit prices, higher brokerage fees, and the launch of shopping applications were cited as factors driving revenue growth. Content segment revenue is projected at 485.7 billion won, with modest growth anticipated due to the peak season in the Japanese webtoon market.