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(Photo = Yonhap news) |
[Alpha Biz= Reporter Paul Lee] Korea Investment & Securities analyzed on the 5th that the performance burden of its main business unit will be reduced, but the sluggishness of its content business unit seems to be holding back. As a result, the target stock price has been lowered from 75,000 won to 68,000 won. The closing price of Kakao on the previous day is 49,300 won.
According to Korea Investment & Securities, Kakao's sales and operating profit in the first quarter of this year are 1.97 trillion won and 110.8 billion won. This is below the market forecast (operating profit of 146.3 billion won).
"Both commerce and advertising will continue to grow year-on-year, but sales are expected to decrease compared to the fourth quarter due to the off-season of advertising," Korea Investment & Securities said. "The game division is expected to rebound with the success of ROM released in the first quarter, but entertainment businesses such as SM and media are expected to be sluggish."
Korea Investment & Securities added, "Restructuring of new businesses such as enterprises reduces the burden of labor costs and marketing as much as possible, but it is burdensome to increase depreciation costs by 20 billion won due to the operation of new data centers."
Korea Investment & Securities said, "Investment opinion in Kakao will maintain 'buy' but lower target stock price by 9.8%."
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
