[Click e-Stock] "KT Nasmedia Maintains Stable Performance... Target Price Raised"

NH Investment & Securities Raises Target Price for KT Nasmedia to 16,000 Won

On September 7, NH Investment & Securities announced that it expects KT Nasmedia to maintain stable performance in the second half of the year. The target price has been raised from 14,000 won to 16,000 won, with a "Buy" investment rating maintained.

Hwajeong Lee, a researcher at NH Investment & Securities, stated, "KT Nasmedia is achieving earnings stability by expanding new media such as OTT (online video services) and out-of-home advertising to adapt to changes in the media environment, as well as broadening its business model (CPS). The company is also making positive efforts to enhance shareholder value, such as canceling 1.4% of its previously acquired treasury shares last month."

In the first half of the year, KT Nasmedia's gross profit increased by 18% year-on-year to 58.7 billion won, and operating profit soared by 121% to 11.1 billion won, significantly exceeding market expectations. This was attributed to strong OTT advertising and additional out-of-home advertising media, which contributed to top-line growth, as well as improved operational efficiency.

In terms of OTT, KT Nasmedia manages advertising for all three major platforms—Netflix, Coupang Play, and TVING—and offers a range of differentiated media package products. Lee commented, "KT Nasmedia’s position as a key OTT advertising media provider is strengthening, and it is expected to continue benefiting from volume growth driven by market expansion."

Regarding CPS, profitability is clearly improving as demand from major commerce partners remains steady, and the company enhances operational efficiency through the advancement of AI- and data-based platforms.

NH Investment & Securities forecasts that this positive trend will continue into the second half of the year, projecting KT Nasmedia's gross profit to reach 72 billion won (up 6% year-on-year) and operating profit to rise to 13.4 billion won (up 84%).

This content was produced with the assistance of AI translation services.