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A377300 NFC Overseas Payments Will Worsen Profitability And Keep Shares Overvalued

Rising Regulatory Burdens And Privacy Concerns Will Hinder Digital Finance

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A377300
AnalystLowTarget
Not Invested
Published 08 Sep 2025

Update shared on 12 Dec 2025

Fair value Increased 15%
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AnalystLowTarget's Fair Value
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1Y
64.1%
7D
-6.9%

Analysts have raised their fair value estimate for Kakao Pay to ₩30,000 from ₩26,000, primarily reflecting higher projected revenue growth and a richer future P/E multiple, despite slightly lower margin assumptions and a modestly reduced discount rate.

What's in the News

  • Kakao Pay launches NFC based overseas "tap to pay" functionality via Alipay+ and Mastercard, enabling contactless payments at over 150 million Mastercard merchant locations worldwide. (Key Developments)
  • The new NFC service complements Kakao Pay's existing QR and barcode cross border payments, broadening options for users traveling to regions including Japan, Southeast Asia, the U.S., Europe, and Oceania. (Key Developments)
  • NFC payments can be made with an NFC enabled Android phone at contactless POS terminals that accept Mastercard, reducing reliance on physical cards and cash while enhancing security through advanced authentication and encryption. (Key Developments)
  • The NFC feature is already available on the latest Kakao Pay app and is scheduled to roll out to KakaoTalk for Android later in September, followed by a sequential launch on iOS. (Key Developments)

Valuation Changes

  • Fair Value Estimate increased from ₩26,000 to ₩30,000, reflecting a moderate upward revision in long term valuation.
  • Discount Rate decreased slightly from 7.54 percent to 7.36 percent, modestly reducing the required return applied in the valuation model.
  • Revenue Growth rose from about 5.20 percent to 8.62 percent, indicating a stronger outlook for top line expansion.
  • Net Profit Margin declined from approximately 7.62 percent to 6.19 percent, incorporating more conservative profitability assumptions.
  • Future P/E increased from about 58.0x to 70.2x, implying a richer multiple on anticipated earnings.

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