South Korean crypto legislation delays drag down NAVER merger process, DS Securities lowers target price to 300k won

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ME News Report, April 14 (UTC+8), DS Investment Securities downgraded NAVER’s target stock price to 300k KRW in their latest research report, but maintained a “Buy” rating. Analyst Choi Seong-hoo pointed out two reasons for the target price reduction: first, due to rising advertising, e-commerce marketing expenses, and depreciation costs, which led to NAVER’s operating profit margin this year decreasing from the expected 18.3% to 17.6%; second, slow progress in legislation related to crypto assets has impacted NAVER Financial and Dunamu’s merger plans, with the originally scheduled September completion possibly delayed. Previously, in the SOTP valuation, DS Securities assigned a value of 15 trillion KRW to the crypto business, but this valuation has now been removed. Additionally, Choi Seong-hoo stated that e-commerce remains NAVER’s core growth driver in the future, with an expected annual e-commerce sales of 2.7 trillion KRW. (Source: MLion)

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