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Photo = Yonhap news |
[Alpha Biz= Paul Lee] NH Investment & Securities forecast that the positive sentiment among overseas investors toward Kakao Pay will continue to grow this year, as the company is expected to transition into the black based on the growth of its securities and payment sectors. The firm maintained its "Buy" rating and target price of 38,000 KRW, up from the previous trading day's close of 30,400 KRW.
NH Investment & Securities stated, "Overseas investors are familiar with the rapid rise in stock prices when fintech companies turn profitable for the first time or signal an expansion of their financial services." They added, "As Kakao Pay is the first listed fintech company to show a turnaround, investors are gradually recognizing the importance of its recovery."
The firm highlighted Kakao Pay's guidance for 15-25% growth compared to last year, anticipating a profitable year on a consolidated basis.
In the securities division, the company is expected to launch overseas derivatives, overseas borrowing, and Individual Savings Accounts (ISA) products in the second half of the year, following its introduction of pension savings accounts last year. The firm predicted that Kakao Pay will avoid a price war in overseas stock trading fees, having increased the fees gradually from 5 basis points (bps) to 10 bps, learning that price sensitivity was lower than expected.
For the payment division, NH Investment & Securities evaluated that Kakao Pay is expanding its offline exposure.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
