The authors are analysts of NH Investment & Securities. They can be reached at hzl.lee@nhqv.com and jaemin.ahn@nhqv.com, respectively. -- Ed. − On Jan 27, Big Hit Entertainment announced a collaboration with NAVER and YG Entertainment. Details are as follows:1) Integration of NAVER’s V LIVE and Weve
The author is an analyst of Shinhan Investment Corp. He can be reached at mj1224@shinhan.com. -- Ed. Set to emerge as content sector bellwether via large investmentsNAVER recently acquired Wattpad, the world’s largest web novel platform, boosting expectations for expansion of the content business. W
The authors are analysts of KB Securities. They can be reached at drlee@kbfg.com and bh.yi@kbfg.com, respectively -- Ed. Webtoon IPs becoming widely popular In Korea, webtoon IPs have continued to be widely used across a variety of categories, from TV dramas and films to games. Webtoon IPs hold meri
The authors are analysts of KB Securities. They can be reached at cygun101@kbfg.com and scyoo@kbfg.com, respectively. -- Ed. Upgrade to BUY; raise target price to KRW12,000 We upgrade our rating on Mirae Asset Daewoo to BUY and raise our TP by 9.1% to KRW12,000. Our rating upgrade is based on: (1) R
Netflix is not paying any network charges in South Korea in spite of its huge profits in the market. Besides, it is paying network charges in the United States and Europe while claiming that it does not have to do the same in South Korea. Its stance is under increasing criticism and a legal dispute
Naver announced on Dec. 20 that it will acquire a 100 percent stake in the world's largest web novel platform Wattpad for about US$600 million.Wattpad is the world's largest social storytelling platform where more than 90 million users spend 23 billion minutes per month. More than 1,500 work
Lotte Group, the fifth-largest conglomerate in South Korea, is in a crisis. It is yet to find a breakthrough although chairman Shin Dong-bin is focusing on innovation. Meanwhile, the larger four, that is, Samsung, Hyundai Motor, SK and LG are turning opportunities into reality despite COVID-19.The c
The Ministry of Science and ICT has announced the list of big digital content providers subject to the revised Telecommunication Business Act. Under the act, these companies are obliged to share the duty of ensuring the stability of their value added communication services with telecom operators.The
The author is an analyst of NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com. -- Ed. Affected by the Covid-19 crisis, earnings polarization among CJ Corp’s affiliates is intensifying. For affiliates with sluggish earnings, securing liquidity represents the main issue. CJ Corp’s
Last year, the top 10 South Korean business groups signed 20 M&A deals despite COVID-19 in order to ensure their future growth. For instance, SK Hynix acquired Intel’s NAND flash business unit for 10.3 trillion won in October last year. Hyundai Motor Group signed two major deals, that is, Boston Dyn
IT players accounted for 63.3 percent of the top 30 companies' combined market capitalization in 2020, Korea Exchange said on Jan. 12. The share rose from 25.4 percent in 2000.Korea's IT industry includes service companies such as Naver and Kakao, and electric and electronics companies such
Mirae Asset Daewoo Securities is facing an investigation by prosecutors for an alleged violation of the Foreign Exchange Transaction Act.The Financial Supervisory Service notified the prosecution on Jan. 11 that Mirae Asset Daewoo violated the Foreign Exchange Transaction Act on Dec. 7, 2020.Mirae A
The author is an analyst of Shinhan Investment Corp. He can be reached at mj1224@shinhan.com. -- Ed. 4Q20 OP forecast at KRW305.2bn (+4.6% QoQ)NAVER is expected to have recorded operating profit of KRW305.2bn (+4.6% QoQ) on sales of KRW1.47tr (+7.8% QoQ) for 4Q20, meeting the market consensus (KRW30
The author is an analyst of Shinhan Investment Corp. He can be reached at mj1224@shinhan.com. -- Ed. Renewed interest in internet platform amid rise of large-cap stocksNAVER and Kakao shares are taking a breather after rallying by 81.8% and 168.4%, respectively, in 2020. Amid the COVID-19 pandemic,
The author is an analyst of NH Investment & Securities. They can be reached at jaemin.ahn@nhqv.com. -- Ed. Sales at NAVER, which likely exceeded W5tn in 2020, should rise by more than 19.6% y-y in 2021, continuing to show rapid growth. We believe that now is the time for stake value improvement stem
The Korea CXO Research Institute announced on Jan. 7 that the enterprise value of the top 100 market cap companies increased from 983 trillion won to 1,745 trillion won from the first day of 2016 to the first day of 2021.The combined value of the 100 South Korean enterprises reached 1,075 trillion w
The author is an analyst of KB Securities. He can be reached at drlee@kbfg.com. -- Ed. Sweet Home tops Netflix rankings in Korea, also charts globally — Sweet Home, a Netflix original drama produced by Studio Dragon, has reached Netflix’s top 10 most-watched lists in major markets since premiering o
This year, initial public offering (IPO) stocks attracted a huge number of individual investors. Multiple stocks attracted trillions of won to over 10 trillion won and this year’s total investment in the IPO market added up to 295.5 trillion won.A total of 76 companies went public this year. Their t
The author is an analyst of NH Investment & Securities. She can be reached at hzl.lee@nhqv.com. -- Ed. We raise our TP on YG Ent from W55,000 to W62,000. Blackpink’s position as a global force is strengthening thanks to rising awareness of the group in Western markets. The company is securing earnin
Naver announced on Dec. 16 that it would delist LINE, its subsidiary in Japan, and make an additional investment of 779.1 billion won in J.Hub, a fully-owned subsidiary in Japan.The investment is to repay borrowings. Earlier, J.Hub borrowed 2,247.9 billion won from Mizuho Bank and SMBC and Naver sto