NICE Information & Communication Expects Benefits from KIS Information & Communication Acquisition… LS Cites 30% Increase in Operating Profit as a Key Factor
[Edaily Reporter Kim Yoon-jung] LS Securities assessed that #NICE Information & Communication’s acquisition of KIS Information & Communication and its policy to strengthen shareholder returns will serve as factors driving an increase in corporate value. (Source: LS Securities) On the 4th, Jeong Hong-sik, an analyst at LS Securities, stated, “The acquisition of KIS Information & Communications will serve as a catalyst for growth in consolidated operating profit,” adding, “Combined with the strengthened shareholder return policy, the company’s investment appeal is increasing.” NICE Information & Communications recently announced that it would acquire the 96.1% stake in KIS Information & Communications held by NICE Holdings for 112.3 billion won. Analyst Jeong noted, “As of 2025, KIS Information & Communications’ operating profit is projected to be 15.5 billion won, accounting for 28.0% of NICE Information & Communications’ operating profit,” and analyzed that “this acquisition will increase consolidated operating profit by 25–30%.” Last year, KIS Information & Communications recorded revenue of 216.5 billion won, operating profit of 15.5 billion won, and net profit of 12.7 billion won. Researcher Jeong “Since the merger with NICE Payments in the third quarter of last year, NICE Information & Communications has maintained high profit growth, with the average operating profit growth rate over the last three quarters reaching 53.8% year-over-year through the efficient allocation of human resources,” he explained, adding, “We also expect the proportion of fixed costs to decrease during the system integration process of the NICE Group’s Value-Added Network (VAN) and Payment Gateway (PG) businesses.” He continued, “Due to the nature of the VAN business, merchants often use multiple VAN providers,” adding, “It is highly likely that the company will maintain the current dual-brand structure of NICE Information & Communications and KIS Information & Communications rather than pursuing full integration.” He also gave a positive assessment of the strengthened shareholder return policy. NICE Information & Communication plans to cancel 900,000 treasury shares (9.0% of the total issued shares) and purchase an additional 3 billion won worth of treasury shares. Researcher Jung explained, “The dividend per share (DPS) is increasing from 730 won in 2023 to 810 won in 2024 and 1,100 won in 2025,” noting, “The company has also outlined a policy to grow the DPS by more than 10% annually from 2026 to 2028.” He further analyzed, “If we simply aggregate KIS Information & Communications’ net profit for 2025 and factor in the effect of the 9.0% treasury stock buyback, the expected price-to-earnings ratio (PER) for 2026 is around 3.7 times,” adding, “The earnings per share (EPS) growth rate is estimated to reach 66.8%.”
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