NHN achieved results in the third quarter of this year, surpassing market forecasts (consensus) thanks to improved profitability in the non-game sector.
It is expected that the launch of new products and the development of blockchain games will also play a role in growth.
According to Shinhan Investment Corp. on the 10th, NHN's sales in the third quarter of this year rose 14.8 percent on-year to 472.5 billion won and operating profit rose 18.6 percent to 27.9 billion won over the same period.
This is more than 0.48% and 8.02% of each consensus. Profitability in the non-game sector has improved significantly. Over the past year, cloud leakage orders have exceeded 100 billion won and have been designated as Amazon Web Services (AWS) premier consulting partners in Japan.
Sales of global commerce businesses such as cross-border e-commerce in China and transactions between North American companies (B2B) commerce are also on a steady rise.
"We are strengthening our position in an area that does not compete with large domestic platform companies," Shinhan Financial Investment said. "The proportion of sales of non games, which was only 60% in 2018, will exceed 80% next year.".
The payment and advertising division achieved the highest quarterly sales. Sales of payments and advertisements rose 23.4 percent on-year to 208.4 billion won in the third quarter of this year.
As domestic and foreign franchises expanded, Payco's transaction amount increased to 1.9 trillion won. Due to the campus zone, the amount of offline payments also increased 56% year-on-year.
As a result, Shinhan Financial Investment maintained 'buy' investment opinion. The target price has been raised from 100,000 won to 110,000 won.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
