[Infostock Daily= Reporter An Hoe Hyun] IBK Securities said it expects a rise in the value of Korea Investment Holdings, which holds a stake in Kakao Bank, as expectations grow for Kakao Bank, which is preparing to be listed. The target share price was raised to 110,000 won and the investment opinion maintained the BUY.
The shareholding ratio of Kakao Bank held by Korea Investment Holdings is about 33.5%. It has a 4.9% stake in Korea Investment Holdings and a 28.6% stake in Korea Investment Value Asset Management.
Assuming the market capitalization of 12 trillion won when listed on Kakao Bank, the valuation profit is estimated at about 3.4 trillion won. This is about 70% of the current market capitalization(the sum of preferred stocks) of Korea Investment Holdings. "Although there is uncertainty about the market value of Kakao Bank and it can be seen as an investment stake that will not be converted into trading profits, the increase in equity value is so large that expectations before listing can bring about a change in valuation," the company said.
"In the case of new target stock prices, the PBR is 1.1 times higher than BPS at the end of 2020, which is a significant explanation with profitability alone, but there is also a special momentum of listing Kakao Bank. We raised our target price to 110,000 won," the company explained.
Reporter An Hoe Hyun ahh@infostock.co.kr
