External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Mirae Asset Securities Co.,Ltd. provides comprehensive wealth management services. The Company offers fixed income securities brokerage, securities dealing, equity underwriting, and other services. Mirae Asset Securities also deals with mergers and acquisitions, foreign currency, and financial derivatives

Equity Bottom-Up

<ul><li>Kakao plans to conduct a spin-off, separating the company into KakaoX (surviving entity) and KakaoAI (newly established entity) at a ratio of 64:36.</li><li>The spin-off is scheduled to take effect on Jan. 1, 2027, with KakaoX and KakaoAI to begin trading as separate listed companies on Jan. 27, 2027.</li><li>KakaoX will retain the “techfin,” content, and mobility businesses as well as investment assets, while KakaoAI will comprise the AI, KakaoTalk platform, KakaoMap, advertising, and commerce businesses</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kakao plans to conduct a spin-off, separating the company into KakaoX (surviving entity) and KakaoAI (newly established entity) at a ratio of 64:36.The spin-off is scheduled to take effect on Jan. 1, 2027, with KakaoX and KakaoAI to begin trading as separate listed companies on Jan. 27, 2027.KakaoX will retain the “techfin,” content, and mobility businesses as well as investment assets, while KakaoAI will comprise the AI, KakaoTalk platform, KakaoMap, advertising, and commerce businessesContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>For 3Q25, Kakao posted revenue of W2.09tr (+9% YoY) and operating profit of W208bn (+59% YoY), beating the consensus estimates (W2.02tr and W164bn) by 3% and 27%, respectively.</li><li>Platform revenue came in at W1.06tr (+12% YoY; 3% higher than our estimate), driven by strong performances from Kakao Mobility and Kakaopay.</li><li>Talk Biz ad growth accelerated, with revenue expanding 11% YoY to W325bn. Content revenue reached W1.03tr (+5% YoY; 5% higher than our estimate), supported by strength in the media segment. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

For 3Q25, Kakao posted revenue of W2.09tr (+9% YoY) and operating profit of W208bn (+59% YoY), beating the consensus estimates (W2.02tr and W164bn) by 3% and 27%, respectively.Platform revenue came in at W1.06tr (+12% YoY; 3% higher than our estimate), driven by strong performances from Kakao Mobility and Kakaopay.Talk Biz ad growth accelerated, with revenue expanding 11% YoY to W325bn. Content revenue reached W1.03tr (+5% YoY; 5% higher than our estimate), supported by strength in the media segment. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kakao (035720 KS/Buy)Strong Confidence in Traffic Growth

External broker reports(aggregated public sources), Daishin Securities

Daishin Securities

Founded in 1962, Daishin Securities is a leading financial services provider in Korea. Daishin securities does its best to provide high quality financial service and to satisfy the various needs of investors. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>3Q25 results to come in-line despite Talk Biz hit by seasonal lull and higher content costs</li><li>AI-integrated KakaoTalk to kick off with ChatGPT in Oct and AI agent launch in Nov</li><li>Short-term correction after the update seen as entry opportunity; still our Top Pick</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

3Q25 results to come in-line despite Talk Biz hit by seasonal lull and higher content costsAI-integrated KakaoTalk to kick off with ChatGPT in Oct and AI agent launch in NovShort-term correction after the update seen as entry opportunity; still our Top PickContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kakao (035720 KS Oct 10, 2025) - AI Rollout to Ease App Revamp Shock

Thematic (Sector/Industry)

<ul><li>Contrary to earlier concerns that the spread of generative AI would reduce both query volumes and user time spent on traditional search engines, the data actually show a meaningful increase in time spent on incumbent platforms.</li><li>Indeed, despite downward pressure on query volume, Google’s aggregate user time has increased sharply, with YoY growth exceeding 10% since June and accelerating past 20% since September (Sensor Tower estimates).</li><li>We believe this trend reflects the growing impact of Google’s AI Overviews (formerly SGE) feature, which provides AI-generated summaries and direct answers within search results. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Contrary to earlier concerns that the spread of generative AI would reduce both query volumes and user time spent on traditional search engines, the data actually show a meaningful increase in time spent on incumbent platforms.Indeed, despite downward pressure on query volume, Google’s aggregate user time has increased sharply, with YoY growth exceeding 10% since June and accelerating past 20% since September (Sensor Tower estimates).We believe this trend reflects the growing impact of Google’s AI Overviews (formerly SGE) feature, which provides AI-generated summaries and direct answers within search results. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Internet (Overweight/Maintain)Momentum set to pick up in 2026

<ul><li>For 2Q25, Kakao reported revenue of W2.03tr (+1% YoY; 4% above the consensus of W1.95tr) and operating profit of W186bn (+39% YoY; 48% above the consensus of W125bn).</li><li>Platform revenue rose 10% YoY to W1.06tr (3% above expectations), driven by strong performances from Kakao Pay and Kakao Mobility.</li><li>Talk Biz revenue was W542bn (+7% YoY), in line with expectations. Content revenue came in at W973bn (-7% YoY), exceeding expectations by 7% thanks to solid results from Kakao Story and the media segment. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

For 2Q25, Kakao reported revenue of W2.03tr (+1% YoY; 4% above the consensus of W1.95tr) and operating profit of W186bn (+39% YoY; 48% above the consensus of W125bn).Platform revenue rose 10% YoY to W1.06tr (3% above expectations), driven by strong performances from Kakao Pay and Kakao Mobility.Talk Biz revenue was W542bn (+7% YoY), in line with expectations. Content revenue came in at W973bn (-7% YoY), exceeding expectations by 7% thanks to solid results from Kakao Story and the media segment. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kakao (035720 KS/Buy)Poised for a Strong Fall Season

South Korea

Kakao Corp. provides Internet portal services such as news, free e-mail, and leisure information.  The Company also offers cross-platform mobile messaging application that allows users to exchange messages.

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Kakao Corp (035720 KS)

Kakao (035720 KS/Buy)Spin-Off Announced

Kakao plans to conduct a spin-off, separating the company into KakaoX (surviving entity) and KakaoAI (newly established entity) at a ratio of 64:36.

Mirae Asset Securities

Kakao (035720 KS/Buy)Strong Confidence in Traffic Growth

For 3Q25, Kakao posted revenue of W2.09tr (+9% YoY) and operating profit of W208bn (+59% YoY), beating the consensus estimates (W2.02tr and W164bn)...

Mirae Asset Securities

Kakao (035720 KS Oct 10, 2025) - AI Rollout to Ease App Revamp Shock

3Q25 results to come in-line despite Talk Biz hit by seasonal lull and higher content costs. AI-integrated KakaoTalk to kick off with ChatGPT in...

Daishin Securities

Internet (Overweight/Maintain)Momentum set to pick up in 2026

Indeed, despite downward pressure on query volume, Google’s aggregate user time has increased sharply, with YoY growth exceeding 10% since June and...

Mirae Asset Securities

Kakao (035720 KS/Buy)Poised for a Strong Fall Season

For 2Q25, Kakao reported revenue of W2.03tr (+1% YoY; 4% above the consensus of W1.95tr) and operating profit of W186bn (+39% YoY; 48% above the...

Mirae Asset Securities

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