Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 26 November, Naver Financial and Dunamu finalized the merger ratio. Under the proposed share swap, one share of Dunamu will be exchanged for 2.54 shares of Naver Financial. </li>
<li>Dunamu's equity value is 15.1 trillion won, and Naver Financial's is 4.9 trillion won.</li>
<li>Overall, we have a positive view of this merger and it is likely to positively impact Naver's share price as well. </li>
</ul>


On 26 November, Naver Financial and Dunamu finalized the merger ratio. Under the proposed share swap, one share of Dunamu will be exchanged for 2.54 shares of Naver Financial. 
Dunamu's equity value is 15.1 trillion won, and Naver Financial's is 4.9 trillion won.
Overall, we have a positive view of this merger and it is likely to positively impact Naver's share price as well. 


Naver Financial and Dunamu Finalizes the Merger Ratio

<ul>
<li>Dunamu and Naver Financial are expected to hold separate board meetings on 26 November and the potential merger of the two companies is on the agenda. </li>
<li>The valuation of Dunamu is expected to be about 15 trillion won and the valuation of Naver Financial is expected to be about 5 trillion won.</li>
<li>This merger offers clear long-term advantages, including the opportunity to compete globally with overseas fintech firms like PayPal and Coinbase. Additionally, the collaboration strengthens Korea's position as a stablecoin leader. </li>
</ul>


Dunamu and Naver Financial are expected to hold separate board meetings on 26 November and the potential merger of the two companies is on the agenda. 
The valuation of Dunamu is expected to be about 15 trillion won and the valuation of Naver Financial is expected to be about 5 trillion won.
This merger offers clear long-term advantages, including the opportunity to compete globally with overseas fintech firms like PayPal and Coinbase. Additionally, the collaboration strengthens Korea's position as a stablecoin leader. 


Naver Financial and Dunamu BODs To Decide on A Comprehensive Stock Swap on 26 November

External broker reports(aggregated public sources), Daishin Securities

Daishin Securities

External broker reports(aggregated public sources)

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.

Equity Bottom-Up

<ul><li>3Q25 earnings meet consensus largely driven by expanded commerce biz, albeit with heavier cost burden</li><li>Commerce expansion tailwinds to subside from 2026; Naver appears to lag behind peers in the pace of AI business</li><li>Dunamu inclusion should help improve margins; focus more on long-term growth and structural shift, rather than short-term events</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 earnings meet consensus largely driven by expanded commerce biz, albeit with heavier cost burdenCommerce expansion tailwinds to subside from 2026; Naver appears to lag behind peers in the pace of AI businessDunamu inclusion should help improve margins; focus more on long-term growth and structural shift, rather than short-term eventsContent 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.

Naver (035420 KS Nov 6, 2025) - Longer-Term Growth Visibility over Short-Term Event-Driven Noise

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

Mirae Asset Securities

Leading full-service brokerage firm in Vietnam. 

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>For 3Q25, NAVER reported revenue of W3.14tr (+16% YoY; 3% above the consensus) and operating profit of W571bn (+9% YoY; 1% above the consensus).</li><li>Search platform revenue came in at W1.06tr (+6% YoY), in line with expectations; we expect this result to help ease concerns about slowing growth.</li><li>Commerce revenue expanded 36% YoY to W985bn (beating expectations by 9%), aided by Smart Store growth (driven by enhanced AI recommendations) and increased take rates. </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, NAVER reported revenue of W3.14tr (+16% YoY; 3% above the consensus) and operating profit of W571bn (+9% YoY; 1% above the consensus).Search platform revenue came in at W1.06tr (+6% YoY), in line with expectations; we expect this result to help ease concerns about slowing growth.Commerce revenue expanded 36% YoY to W985bn (beating expectations by 9%), aided by Smart Store growth (driven by enhanced AI recommendations) and increased take rates. 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.

NAVER (035420 KS/Buy)A Strong Buying Opportunity

<ul>
<li>According to numerous local media, Naver Corp (035420 KS) is set to acquire Dunamu, the operator of Upbit which is the largest cryptocurrency exchange in Korea. </li>
<li>According to Naver Corp (035420 KS), its subsidiary, Naver Financial, is discussing various collaborations with Dunamu, including stablecoins  and potential stock exchange. However, nothing has been finalized so far. </li>
<li>If Dunamu is valued at 15 trillion won, this would suggest a P/E of 18x based on 2025 annualized net profit of 836 billion won (net profit in 1H25 annualized). </li>
</ul>


According to numerous local media, Naver Corp (035420 KS) is set to acquire Dunamu, the operator of Upbit which is the largest cryptocurrency exchange in Korea. 
According to Naver Corp (035420 KS), its subsidiary, Naver Financial, is discussing various collaborations with Dunamu, including stablecoins  and potential stock exchange. However, nothing has been finalized so far. 
If Dunamu is valued at 15 trillion won, this would suggest a P/E of 18x based on 2025 annualized net profit of 836 billion won (net profit in 1H25 annualized). 


Naver to Acquire Dunamu? (Operator of Upbit - Largest Cryptocurrency Exchange in Korea)

South Korea

Naver Corp. provides Internet site with web portal services, such as search engine, online game and content development.  The Company also offers marketing service through text and banner advertisement.

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Naver Corp (035420 KS)

Naver Financial and Dunamu Finalizes the Merger Ratio

On 26 November, Naver Financial and Dunamu finalized the merger ratio. Under the proposed share swap, one share of Dunamu will be exchanged for...

Douglas Kim

Naver Financial and Dunamu BODs To Decide on A Comprehensive Stock Swap on 26 November

Dunamu and Naver Financial are expected to hold separate board meetings on 26 November and the potential merger of the two companies is on the agenda.

Douglas Kim

Naver (035420 KS Nov 6, 2025) - Longer-Term Growth Visibility over Short-Term Event-Driven Noise

Dunamu inclusion should help improve margins; focus more on long-term growth and structural shift, rather than short-term events

Daishin Securities

NAVER (035420 KS/Buy)A Strong Buying Opportunity

For 3Q25, NAVER reported revenue of W3.14tr (+16% YoY; 3% above the consensus) and operating profit of W571bn (+9% YoY; 1% above the consensus).

Mirae Asset Securities

Naver to Acquire Dunamu? (Operator of Upbit - Largest Cryptocurrency Exchange in Korea)

According to numerous local media, Naver Corp (035420 KS) is set to acquire Dunamu, the operator of Upbit which is the largest cryptocurrency...

Douglas Kim

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