[Infostock Daily= Reporter An Hoe Hyun] SK Securities expects Kakao's operating profit ratio to improve for the eighth consecutive quarter on the 21st. It is expected that Kakao's favorable business environment will continue to improve overwhelming growth and profitability this year.
Maintaining investment opinion 'Buy' and raising target stock price by 14.5% from 480,000 won to 550,000 won.
"The operating profit ratio is expected to be 11.7%, and the operating profit rate will continue to increase, which has continued every quarter since the fourth quarter of 2018," the company analyzed, adding, "Kakao is expected to continue to improve its profitability in 2021."
Based on KakaoTalk traffic, which has increased since COVID-19, the platform sector is expected to continue to grow as the Talk Biz sector surpassed 1 billion won in daily sales in December. The transaction amount of Kakao Page and Piccoma is also expected to increase by two digits compared to the previous quarter due to increased marketing.
"Despite the increase in marketing costs in the fourth quarter, the continued improvement in operating profit ratio based on top-line growth will continue in the fourth quarter of 2020," the company explained.
Reporter An Hoe Hyun ahh@infostock.co.kr
