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[Alpha Biz=(Chicago) Reporter Paul Lee] DB Financial Investment has maintained its investment opinion in Kakao and raised its target price from 69,000 won to 75,000 won. While Kakao posted earnings in the fourth quarter of last year, which exceeded market expectations, it suggested that future growth will continue.
On the 16th, DB Financial Investment said, "Kakao's sales in the fourth quarter of last year rose 23% year-on-year to 2.1711 trillion won, and operating profit rose 108.7% to 189.2 billion won over the same period, with operating profit exceeding market expectations (151.7 billion won)."
DB Financial Investment said, "The cost efficiency of the enterprise led to reduced deficit in the new initiative sector, reduction of manpower efficiency and incentive reversal, and recovery of demand for high-margin advertising and bizboard advertisers."
"We expect annual sales to be 9.1034 trillion won and operating profit to be 657.2 billion won this year," DB Financial Investment said. "In the first half of last year, there is no burden due to the sluggish advertising market and one-off costs, and we expect a local advertising revenue model for small business owners due to the expansion of regional-centered services in the second half of this year."
"The domestic advertising market is recovering slowly, but it is positive that it is growing through talk messages and commerce advertisements," DB Financial Investment said. "Above all, we are defending profits with cost efficiency for two consecutive quarters."
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
