April 26, 2024

• 

[THE INVESTOR] Kakao’s fundamentals continue to improve although its earnings are slow, said Hana Financial Investment on April 11, maintaining a “buy” recommendation and 180,000 won (US$168.89) target price.

While its earnings are weighed down by increasing costs, earnings will improve across sectors, and its mid- to long-term fundamentals maintain momentum, said analyst Hwang Seung-taek.

The most visible would be commercialization of “PlayerUnknown’s Battlegrounds,” said the analyst forecasting that following the commercialization of the game to Kakao users it will be able to boost revenue by 13 billion won and operating profit by 4 billion won. 

Commercialization of Kakao Taxi will be reflected from the second quarter and will gradually contribute more to the mobility unit, and other sectors will continue to grow, he added. 

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