[Edaily Reporter KIM YOON-JEONG ] Korea Investment & Securities projected that kakaopay(377300)’s second-quarter earnings would exceed market expectations and that expectations for the institutionalization of stablecoins would also be reflected in the second half of the year. However, given the burden of high valuations, the firm maintained its “Neutral” investment rating.

On the 20th, Jeong Ho-yun, an analyst at Korea Investment & Securities, stated, “Second-quarter revenue and operating profit are projected to be 325.5 billion won and 38.3 billion won, respectively, with operating profit expected to exceed the consensus,” adding, “Earnings are expected to continue their stable growth in the second quarter as well.”
Korea Investment & Securities projected kakaopay’s second-quarter revenue at 325.5 billion won, representing a 36.6% year-over-year increase and an 8.4% quarter-over-quarter increase. Operating profit is expected to reach 38.3 billion won, up 310.6% year-over-year and 18.8% quarter-over-quarter, exceeding the market consensus of 33.2 billion won.
Revenue for the Payment Business Division is projected to reach 139.1 billion won, up 11.2% year-over-year and 0.5% quarter-over-quarter. Both online and offline payments are expected to continue posting double-digit growth.
Revenue for the Financial Services Division is estimated to reach 169 billion won, up 68.4% year-over-year and 15.8% quarter-over-quarter. Analysts noted that kakaopay Securities’ domestic stock trading volume is expected to increase significantly in the second quarter, following the trend from the first quarter, while the insurance and lending segments are also projected to continue their revenue growth compared to the previous quarter.
Researcher Jeong explained, “The Payment Business Division has been maintaining stable double-digit growth in both online and offline sectors since the fourth quarter of last year, and the Financial Business Division is also expected to sustain high growth due to the increase in trading volume in the domestic stock market.”
He also cited the institutionalization of stablecoins as a key variable to watch in the second half of the year. On the 15th, the Financial Services Commission announced plans to enact the Digital Asset Act within the year to foster a digital asset ecosystem.
Researcher Jeong stated, “This includes provisions related to the institutionalization of stablecoin issuance and circulation,” adding, “Once the institutionalization of the stablecoin and virtual asset markets gains momentum, it will be important to pay attention to kakaopay, which is preparing a stablecoin ecosystem at the group level alongside KakaoBank Corp. and Kakao.”
However, he pointed to high valuations as a concern. Researcher Jeong explained, “The very high valuation compared to global fintech companies is a burden,” but added, “Since the direction of earnings growth is clear and expectations regarding the institutionalization of stablecoins could be reflected in the second half of the year, I recommend keeping an eye on the stock during any further corrections.”