[Click e Stock] "Innocean Benefits from Expanded New Car Lineups... Overseas Expansion to Continue"

Samsung Securities Maintains 25,000-Won Target Price With "Buy" Rating

On February 4, Samsung Securities maintained its target price for Innocean at 25,000 won and reiterated its "Buy" rating. This implies an upside potential of 32.9% compared with the closing price of 18,810 won on February 3.

Innocean's gross profit in the fourth quarter was 268.2 billion won, up 3.7% year-on-year, and its operating profit was 45.7 billion won, up 7.1% year-on-year, in line with the market consensus. The operating margin as a percentage of gross profit was 17.0%, an improvement of 0.5 percentage points from the same period a year earlier.

Domestic gross profit grew 2.6%, driven by increased orders from major non-affiliated advertisers, while overseas gross profit rose 4.0% on the back of strong performance in European electric vehicle campaigns. Selling, general and administrative expenses were also effectively managed through cost efficiencies under a disciplined, tight management stance.

As of 2025, the regional breakdown of gross profit is projected to be 54% from the Americas, 23% from headquarters, 13% from Europe, 9% from emerging markets, and 1% from China. Overseas gross profit will account for as much as 77% of the total.

In 2026, gross profit and operating profit are expected to increase by 6% each year-on-year. Gross profit is forecast at 1.0467 trillion won, and operating profit at 172.6 billion won.

Innocean plans to continue expanding its overseas business, supported by stronger campaign execution following the expansion of new car lineups at its largest advertising client, as well as by securing overseas strategic hubs in locations such as Riyadh in Saudi Arabia and Bengaluru in India.

Profit improvement at domestic subsidiaries is also anticipated. Innocean S is steadily enhancing its performance as its capabilities in integrated campaigns centered on digital and social channels gain recognition, while DePurple and others are expected to continue improving profitability by winding down low-margin businesses.

Gross profit and operating profit margin relative to gross profit. Samsung Securities

As the company maintains a profitability-focused management stance and continues its earnings growth trajectory, its shareholder return policy is also expected to be strengthened, backed by an expanded dividend pool. The expected dividend for 2026 is 1,205 won per share, representing a dividend yield of 6.4%.

Choi Minha, an analyst at Samsung Securities, commented, "External uncertainties surrounding the business environment are likely to persist for the time being, but as the results of strengthening fundamentals and improving the business structure gradually become visible, the trend of earnings improvement will continue."