[Click eStock] "Kakao Marks First Year of AI Agent Business Expansion"

On January 13, NH Investment & Securities maintained its "Buy" investment rating and target price of 87,000 won for Kakao, stating, "Last year saw a normalization of earnings, and steady growth is expected this year as well."

On this day, Ahn Jaemin, a researcher at NH Investment & Securities, analyzed, "The expansion of Kakao's artificial intelligence (AI) business will accelerate, centered around 'ChatGPT for Kakao' and 'Kanana.'"

For KakaoTalk to level up, new roles beyond being a messenger were recommended. Researcher Ahn pointed out, "The failure of the initial screen overhaul confirmed that expanding into a social networking service (SNS) platform will not be easy."

He added, "On the other hand, the agent AI market is still in its early stages and can leverage the unique characteristics of messengers. If consumer convenience is enhanced and partnerships with external partners are properly established, Kakao could secure market leadership."

For the fourth quarter of last year, Kakao's revenue is projected at 2.122 trillion won (up 8.4% year-on-year), and operating profit at 190.4 billion won (up 152.4%), which is expected to meet the market consensus for operating profit.

By segment, advertising revenue is expected to reach 362.9 billion won (up 13.1%), benefiting from the peak season and the effect of the first tab overhaul. Commerce revenue is projected at 245.6 billion won (up 4.2%). Subsidiaries such as Kakao Pay and Kakao Mobility are also expected to continue their solid growth.

However, Researcher Ahn noted, "A slowdown in sales is inevitable due to the lack of new releases from SM and Kakao Games during the off-season," and added, "Marketing expenses are expected to increase to 125 billion won (up 20.8%) due to Piccoma's promotions."