April 25, 2024

• 

[THE INVESTOR] Kakao is growing across sectors from advertising to contents, said Samsung Securities on Jan. 16, raising the target price to 190,000 won (US$178.62) from 170,000 won.

Its revenue in the fourth quarter last year increased 19.4 percent on-year to 541.8 billion won, satisfying market expectations, and will grow company-wide except for games, said analyst Oh Dong-hwan.

Value of its main platforms -- advertising, contents and e-commerce -- continue to rise from growing transactions, and the ad unit in particular will enjoy the effects of a new platform introduced in December, said the analyst. 

Its games will rebound while Kakao Bank’s introduction of new products will further boost corporate value, noted Oh. 

The earnings of Dunamu, partially owned by Kakao, will significantly increase in the fourth quarter as the transactions at virtual currency exchange Upbit increases, and will contribute approximately 20 billion won profit on a consolidated basis, according to the analyst. 

As the government seeks to impose regulations on cryptocurrency exchanges, though, there are many uncertainties Upbit faces, tand it is hard to reflect the value of Dunamu on that of Kakao, added Oh.

By Hwang You-mee (glamazon@heraldcorp.com)