Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<p>Last evening post market close, KRX announced the Fast Entry of <a href="https://www.smartkarma.com/entities/kakaobank-corp" target="_blank" data-smartkarma-citation="entities:33501:1" rel="noopener">KakaoBank (323410 KS)</a> and <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960 KS)</a> to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> at the close of trading on 9 September.</p><p>As expected, <a href="https://www.smartkarma.com/entities/lock-lock-co-ltd" target="_blank" data-smartkarma-citation="entities:4739:1" rel="noopener">Lock&amp;Lock (115390 KS)</a> and <a href="https://www.smartkarma.com/entities/jw-pharmaceutical-corp" target="_blank" data-smartkarma-citation="entities:18784:1" rel="noopener">Jw Pharmaceutical (001060 KS)</a> will be deleted from the index.</p><p>Given the rapidly shrinking volumes in <a href="https://www.smartkarma.com/entities/kakaobank-corp" target="_blank" data-smartkarma-citation="entities:33501:1" rel="noopener">KakaoBank (323410 KS)</a> and <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960 KS)</a>, the impact of passive buying will be larger than what the headline numbers indicate.</p><p>The deletions were expected, the stocks have sold off from their highs, some shorts have been built, and they will no longer be short sell eligible from 10 September. Expect the stocks to move lower and then for short covering to begin as borrow is recalled.</p><p>Local institutions have been big buyers on both inclusions since listing. If part of this buying is for their passive tracking baskets, there could be less buying from now to implementation and the stocks may trade weak closer to rebalance day.</p><p>With the <a href="https://www.smartkarma.com/entities/kakao-pay-corp" target="_blank" data-smartkarma-citation="entities:29675:1" rel="noopener">Kakao Pay (377300 KS)</a> IPO back on the table, investors could look to switch out of <a href="https://www.smartkarma.com/entities/kakaobank-corp" target="_blank" data-smartkarma-citation="entities:33501:1" rel="noopener">KakaoBank (323410 KS)</a> while the changing gaming rules and regulations in China could be a dampener for <a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960 KS)</a>.</p>

Last evening post market close, KRX announced the Fast Entry of KakaoBank (323410 KS) and  Krafton Inc (259960 KS) to the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) at the close of trading on 9 September.As expected, Lock&amp;Lock (115390 KS) and Jw Pharmaceutical (001060 KS) will be deleted from the index.Given the rapidly shrinking volumes in KakaoBank (323410 KS) and  Krafton Inc (259960 KS), the impact of passive buying will be larger than what the headline numbers indicate.The deletions were expected, the stocks have sold off from their highs, some shorts have been built, and they will no longer be short sell eligible from 10 September. Expect the stocks to move lower and then for short covering to begin as borrow is recalled.Local institutions have been big buyers on both inclusions since listing. If part of this buying is for their passive tracking baskets, there could be less buying from now to implementation and the stocks may trade weak closer to rebalance day.With the Kakao Pay (377300 KS) IPO back on the table, investors could look to switch out of KakaoBank (323410 KS) while the changing gaming rules and regulations in China could be a dampener for  Krafton Inc (259960 KS).

KOSPI200 September Index Rebalance: Krafton, Kakao Bank Fast Entry Confirmed

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<p>Kakao Pay announced its new IPO price range today. The company lowered the IPO price range to 60,000 won to 90,000 won per share (down from 63,000 won to 96,000 won per share previously). The IPO offering range has also been revised down slightly to US$879 million to US$1,319 million. The book building for the institutional investors starts on 29 September. </p><table class="table table-striped">
<colgroup>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td style="width: 205pt;"><div>Deal Specifics of the Kakao Pay IPO (Revised)</div></td>
<td style="width: 302pt;"> </td>
</tr>
<tr>
<td>Lead underwriters of the IPO: </td>
<td style="width: 302pt;">Samsung Securities, Goldman Sachs, JP Morgan, Daishin Securities</td>
</tr>
<tr>
<td>Expected IPO price per share: </td>
<td style="width: 302pt;">60,000 won (low)/90,000 won (high)</td>
</tr>
<tr>
<td>Number of Shares for IPO:</td>
<td style="width: 302pt;">17m shares (new shares)</td>
</tr>
<tr>
<td>IPO base deal size: </td>
<td style="width: 302pt;">US$879 mn (low);  US$1,319 mn (high)</td>
</tr>
<tr>
<td>Expected common shares outstanding, fully diluted (post-IPO):  </td>
<td style="width: 302pt;">135.9m shares</td>
</tr>
<tr>
<td>Expected market cap after IPO:</td>
<td style="width: 302pt;">8,154 billion won (low)/12,231 billion won (high)</td>
</tr>
<tr>
<td>Book open: </td>
<td style="text-align: left; width: 302pt;">29-Sep-21</td>
</tr>
<tr>
<td>Book closed:</td>
<td style="text-align: left; width: 302pt;">30-Sep-21</td>
</tr>
<tr>
<td>Listing date: </td>
<td style="text-align: left; width: 302pt;">14-Oct-21</td>
</tr>
<tr>
<td>Source: Company data</td>
<td style="width: 302pt;"> </td>
</tr>
</tbody>
</table><div class="content-highlight">
<p>Our base case valuation of Kakao Pay is an implied market cap of 12.2 trillion won or 89,739 won per share (0.5% higher than previous valuation).</p>
<ul>
<li>Our base case valuation is based on 10.6x EV/Sales multiple and applying this to our estimated sales of 954 billion won in 2022. </li>
<li>The EV/S multiple of 10.6x is based on the median valuation multiple of the comps in 2022. Among the comps, the valuation multiple of Upstart Holdings has increased materially in the past two months, which was offset by lower valuation multiples of 360 Digitech and Lemonade.</li>
</ul>
<p>The IPO price range is from 60,000 won to 90,000 won. If the IPO is priced near the high end of the IPO price range, we would avoid this deal. On the other hand, if the IPO is priced close to the low to mid end of the IPO price range, we would be more comfortable with taking the deal.</p>
</div>

Kakao Pay announced its new IPO price range today. The company lowered the IPO price range to 60,000 won to 90,000 won per share (down from 63,000 won to 96,000 won per share previously). The IPO offering range has also been revised down slightly to US$879 million to US$1,319 million. The book building for the institutional investors starts on 29 September. 






Deal Specifics of the Kakao Pay IPO (Revised)
 


Lead underwriters of the IPO: 
Samsung Securities, Goldman Sachs, JP Morgan, Daishin Securities


Expected IPO price per share: 
60,000 won (low)/90,000 won (high)


Number of Shares for IPO:
17m shares (new shares)


IPO base deal size: 
US$879 mn (low);  US$1,319 mn (high)


Expected common shares outstanding, fully diluted (post-IPO):  
135.9m shares


Expected market cap after IPO:
8,154 billion won (low)/12,231 billion won (high)


Book open: 
29-Sep-21


Book closed:
30-Sep-21


Listing date: 
14-Oct-21


Source: Company data
 



Our base case valuation of Kakao Pay is an implied market cap of 12.2 trillion won or 89,739 won per share (0.5% higher than previous valuation).

Our base case valuation is based on 10.6x EV/Sales multiple and applying this to our estimated sales of 954 billion won in 2022. 
The EV/S multiple of 10.6x is based on the median valuation multiple of the comps in 2022. Among the comps, the valuation multiple of Upstart Holdings has increased materially in the past two months, which was offset by lower valuation multiples of 360 Digitech and Lemonade.

The IPO price range is from 60,000 won to 90,000 won. If the IPO is priced near the high end of the IPO price range, we would avoid this deal. On the other hand, if the IPO is priced close to the low to mid end of the IPO price range, we would be more comfortable with taking the deal.


Kakao Pay - Updated Valuation With Revised IPO Price Range

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<h2>Revision summary</h2><p>Kakao Pay has just submitted a revised securities declaration with a downward revision of the indicative price band. The new price band is ₩60,000 to ₩90,000, which is about a 4~6% cut from the previous one. The total number of publicly offered shares is still 17 million shares. As a result, the funds to be raised through this IPO are between ₩1.02T and ₩1.53T.</p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="150">
<col width="150">
<col width="150">
<col width="150">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Indicative price band"}'>Indicative price band</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Low, Previous"}'>Low, Previous</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"High, Previous"}'>High, Previous</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Low, Revised"}'>Low, Revised</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"High, Revised"}'>High, Revised</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Price"}'>Price</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":63000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩63,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":96000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'>₩96,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":60000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'><strong>₩60,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":90000}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]'><strong>₩90,000</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Base deal size"}'>Base deal size</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.071}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000000">₩1.07T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.632}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000000">₩1.63T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.02}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000000"><strong>₩1.02T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.53}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-1]C[0]*Terms!R8C2/1000000000000"><strong>₩1.53T</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Institutional allotment"}'>- Institutional allotment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5890500000000001}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-1]C[0]*Terms!R12C2">₩0.59T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.8976000000000001}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-1]C[0]*Terms!R12C2">₩0.90T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.561}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-1]C[0]*Terms!R12C2"><strong>₩0.56T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.8415000000000001}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-1]C[0]*Terms!R12C2"><strong>₩0.84T</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Implied market cap"}'>Implied market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":8.213128875}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-3]C[0]*130367125/1000000000000">₩8.21T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12.515244}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-3]C[0]*130367125/1000000000000">₩12.52T</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7.8220275}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-3]C[0]*130367125/1000000000000"><strong>₩7.82T</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11.73304125}' data-sheets-numberformat='[null,2,"₩#,##0.00T"]' data-sheets-formula="=R[-3]C[0]*130367125/1000000000000"><strong>₩11.73T</strong></td>
</tr>
<tr><td colspan="5" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table><p>The revised schedule is as follows. The book for overseas institutional investors (through Goldman Sachs and JP Morgan) opens on September 23rd and closes on the 30th at 5 pm (local time). For your reference, the book for those local institutions dealing with Samsung Securities opens on September 29th. <span>The payment date is October 8, and the listing date will be announced later.</span></p><table class="table table-striped">
<colgroup>
<col width="200">
<col width="200">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Schedule"}'>Schedule</td></tr>
<tr>
<td><strong>IR begins</strong></td>
<td style="text-align: right;"><strong>2021. 09. 23</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Book open"}'><strong>Book open</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44468}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'><strong>2021. 09. 29</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Book close"}'><strong>Book close</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44469}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'><strong>2021. 09. 30</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Allotment"}'>Allotment</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44470}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 10. 01</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Subscription"}'>Subscription</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44474}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 10. 05</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment"}'><strong>Payment</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44477}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'><strong>2021. 10. 08</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Listing"}'>Listing</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"TBA"}'>TBA</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: DART"}'>Source: DART</td></tr>
</tbody>
</table>

Revision summaryKakao Pay has just submitted a revised securities declaration with a downward revision of the indicative price band. The new price band is ₩60,000 to ₩90,000, which is about a 4~6% cut from the previous one. The total number of publicly offered shares is still 17 million shares. As a result, the funds to be raised through this IPO are between ₩1.02T and ₩1.53T.









Indicative price band
Low, Previous
High, Previous
Low, Revised
High, Revised


Price
₩63,000
₩96,000
₩60,000
₩90,000


Base deal size
₩1.07T
₩1.63T
₩1.02T
₩1.53T


- Institutional allotment
₩0.59T
₩0.90T
₩0.56T
₩0.84T


Implied market cap
₩8.21T
₩12.52T
₩7.82T
₩11.73T

Source: DART

The revised schedule is as follows. The book for overseas institutional investors (through Goldman Sachs and JP Morgan) opens on September 23rd and closes on the 30th at 5 pm (local time). For your reference, the book for those local institutions dealing with Samsung Securities opens on September 29th. The payment date is October 8, and the listing date will be announced later.





Schedule

IR begins
2021. 09. 23


Book open
2021. 09. 29


Book close
2021. 09. 30


Allotment
2021. 10. 01


Subscription
2021. 10. 05


Payment
2021. 10. 08


Listing
TBA

Source: DART



Kakao Pay Listing: Revision Summary & Pricing Details

<p>The following six major IPOs will debut in the Korean stock market in the second half of this year.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Major IPOs in Korea later this year"}'>Major IPOs in Korea later this year</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Tentative listing date"}'>Tentative listing date</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Target valuation"}'><div><div>Estimated target valuation</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hyundai Heavy Industries"}'>Hyundai Heavy Industries</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"September"}'>September</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩4.5~5.3T"}'>₩4.5T~₩5.3T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Pay"}'><strong>Kakao Pay</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"October"}'><strong>October</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩8.0~12.0T"}'><strong>₩7.0T~₩11.0T</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Simone Accessory"}'>Simone Accessory Collection</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"October"}'>October</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩2.0T"}'>₩2.0T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hyundai Engineering"}'>Hyundai Engineering</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"4th quarter"}'>4th quarter</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩7.0~9.0T"}'>₩8.0T~₩10.0T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Netmarble Neo"}'>Netmarble Neo</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"4th quarter"}'>4th quarter</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩2.0T"}'>₩2.0T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Energy Solution"}'><strong>LG Energy Solution</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"4th quarter"}'><strong>4th quarter or next year</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"₩50.0~70.0T"}'><strong>₩50.0T~₩70.0T</strong></td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: Local news outlets"}'>Source: Local news outlets</td></tr>
</tbody>
</table><ul>
<li>First of all, <strong>Hyundai Heavy Industries</strong> will complete its listing by the end of September.</li>
<li>
<strong>Kakao Pay</strong> will submit a revised IPO prospectus next week and complete the listing process by October.</li>
<li>
<strong>Hyundai Engineering</strong>, in charge of plant and infrastructure at Hyundai Motor Group, is also expected to debut on the KOSPI around November. Hyundai Engineering's valuation is estimated at up to ₩10T.</li>
<li>In addition, <strong>Simone Accessory Collection</strong> and <strong>Netmarble Neo</strong> are also expected to make a debut on the KOSPI in the fourth quarter. They are each aiming for an IPO valuation of ₩2T.</li>
<li>However, <strong>LG Energy Solutions</strong>, originally scheduled to go public in October, is highly likely to delay the IPO schedule due to the GM recall incident this week.</li>
</ul>

The following six major IPOs will debut in the Korean stock market in the second half of this year.







Major IPOs in Korea later this year
Tentative listing date
Estimated target valuation


Hyundai Heavy Industries
September
₩4.5T~₩5.3T


Kakao Pay
October
₩7.0T~₩11.0T


Simone Accessory Collection
October
₩2.0T


Hyundai Engineering
4th quarter
₩8.0T~₩10.0T


Netmarble Neo
4th quarter
₩2.0T


LG Energy Solution
4th quarter or next year
₩50.0T~₩70.0T

Source: Local news outlets


First of all, Hyundai Heavy Industries will complete its listing by the end of September.

Kakao Pay will submit a revised IPO prospectus next week and complete the listing process by October.

Hyundai Engineering, in charge of plant and infrastructure at Hyundai Motor Group, is also expected to debut on the KOSPI around November. Hyundai Engineering's valuation is estimated at up to ₩10T.
In addition, Simone Accessory Collection and Netmarble Neo are also expected to make a debut on the KOSPI in the fourth quarter. They are each aiming for an IPO valuation of ₩2T.
However, LG Energy Solutions, originally scheduled to go public in October, is highly likely to delay the IPO schedule due to the GM recall incident this week.


Kakao Pay Listing Resumes Next Week, but LG Energy Solution IPO Delayed Possibly to Next Year

Event-Driven

<h2>3 key points of the first earnings release</h2><hr><p><strong>Point 1: Kakao Bank recorded ₩116B in net profit in the first half, surpassing last year's annual performance just in half a year.</strong></p><div class="content-highlight"><p>This is an increase of 156.2% from the first half of last year. Net profit for the second quarter was ₩69B, up 158.7% from the second quarter of last year.</p></div><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/268/original/Screen+Shot+2021-08-17+at+3.15.33+AM.png?1629184549" class="editor-image img-responsive" data-smartkarma-image-id="224268"></figure></section><hr>
<p><strong>Point 2: As for Kakao Bank's platform sector growth, stock account opening application services and loans linked to non-banking financial companies (NBFCs) increased by 43% and 51%, respectively, from the end of the previous year.</strong></p>
<div class="content-highlight"><p>This platform sector performance is crucial in determining the possibility of Kakao Bank taking a healthier growth path. And it seems to have robust growth in this area.</p></div>
<section class="figure"><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/295/original/Screen+Shot+2021-08-17+at+4.25.41+AM.png?1629188760" class="editor-image img-responsive" data-smartkarma-image-id="224295"></figure></section></section></section><hr>
<p><strong>Point 3: As of the end of June, Kakao Bank users stood at 16.71 million, an increase of 1.27 million from the end of last year.</strong></p>
<div class="content-highlight">
<p>The increase in new customers of Kakao Bank this year was led by people in their 40s and older. Since launching the service, the percentage of accumulated customers in their 20s and 30s was 54%, but 48% of new customers in the first half of this year are in their 40s and 50s.</p>
<p>This is a very positive signal for Kakao Bank, which tries to convert its flagship product from a low-yielding personal credit loan to a high-yield product, a mortgage loan.</p>
</div>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/224/286/original/Screen+Shot+2021-08-17+at+3.40.11+AM.png?1629186027" class="editor-image img-responsive" data-smartkarma-image-id="224286"></figure></section></section>

3 key points of the first earnings releasePoint 1: Kakao Bank recorded ₩116B in net profit in the first half, surpassing last year's annual performance just in half a year.This is an increase of 156.2% from the first half of last year. Net profit for the second quarter was ₩69B, up 158.7% from the second quarter of last year.
Point 2: As for Kakao Bank's platform sector growth, stock account opening application services and loans linked to non-banking financial companies (NBFCs) increased by 43% and 51%, respectively, from the end of the previous year.
This platform sector performance is crucial in determining the possibility of Kakao Bank taking a healthier growth path. And it seems to have robust growth in this area.

Point 3: As of the end of June, Kakao Bank users stood at 16.71 million, an increase of 1.27 million from the end of last year.

The increase in new customers of Kakao Bank this year was led by people in their 40s and older. Since launching the service, the percentage of accumulated customers in their 20s and 30s was 54%, but 48% of new customers in the first half of this year are in their 40s and 50s.
This is a very positive signal for Kakao Bank, which tries to convert its flagship product from a low-yielding personal credit loan to a high-yield product, a mortgage loan.



Local Retail-Led Momentum Trading Today, Preemptively Reflecting Kakao Bank's Earnings Release

South Korea

Kakao Pay Corp. operates financial businesses. The Company provides online payment, currency encryption, and other services. Kakao Pay conducts businesses in South Korea.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Kakaopay (377300 KS)

KOSPI200 September Index Rebalance: Krafton, Kakao Bank Fast Entry Confirmed

Krafton & KakaoBank will be added to the KOSPI200 index at the close on 9 Sep, replacing Lock&Lock and JW Pharma. The inclusions will be short sell...

Brian Freitas

Kakao Pay - Updated Valuation With Revised IPO Price Range

Kakao Pay announced its new IPO price range today. The company lowered the IPO price range to 60,000 won to 90,000 won per share (down from 63,000...

Douglas Kim

Kakao Pay Listing: Revision Summary & Pricing Details

This post summarizes the key changes in Kakao Pay's revised IPO prospectus and examines the revised pricing along with the aspects that will likely...

Sanghyun Park

Kakao Pay Listing Resumes Next Week, but LG Energy Solution IPO Delayed Possibly to Next Year

This post delivers the latest news on the listing schedule of Kakao Pay and LG Energy Solution and discusses potential impacts on their share prices.

Sanghyun Park

Local Retail-Led Momentum Trading Today, Preemptively Reflecting Kakao Bank's Earnings Release

This post summarizes the three key points of Kakao Bank's first earnings release today. It then discusses today's price movement and what we should...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)