SK Securities forecasted that NAVER's performance will gradually improve. They raised the target stock price from the previous 270,000 won to 300,000 won and suggested an investment opinion of 'buy.' On the 17th, NAVER's closing price was 211,000 won.
On the 18th, Nam Hyo-ji, a researcher at SK Securities, said, “With the launch of Plus Store and the impact of the commission restructuring, NAVER's commerce revenue estimates have been raised by 6.3% compared to previous estimates,” adding, “As a result, the target stock price has also been increased.”
Due to active promotions aimed at expanding consumer awareness of the new application, NAVER's marketing burden may increase in the first half of the year. In this regard, researcher Nam said, “The effect of increased transaction volume is expected from the second half,” noting that “last year, there were concerns about low transaction growth rates, which negatively impacted stock performance, but it is expected to show steady upward growth.”
NAVER has shown various moves related to artificial intelligence (AI), including the development of Hyperclova X and the provision of B2B services. Researcher Nam stated, “As of this year, AI results will be more prominent in B2C,” adding, “It is notably applied in the commerce business.” On the 12th of this month, NAVER launched the AI-based personalized shopping service, NAVER Plus Store, as a separate app. While the existing NAVER Shopping transitioned from search to shopping, the Plus Store aims to evolve into exploration and discovery-oriented shopping.
In the Plus Store, AI is involved in the entire shopping process, including product exploration, price comparison, ordering, payment, delivery, and reviews. Users can enjoy a more personalized shopping experience.
Along with the launch of Plus Store, the commission charging structure will also be reformed. Until now, a commission of 1.81% was charged for users who entered the store via search; however, starting June 2, sales commissions will be set based on the transaction amount sold on NAVER Shopping, regardless of entry. When transactions occur through self-marketing, a commission rate of 0.91% to 1.82% will apply, while all others will have a rate of 2.73% to 3.64%.
Researcher Nam noted, “NAVER's on-platform transaction volume last year is estimated to be around 31 trillion won,” and added, “The revenue increase effect due to the commission rate reform is expected to be about 160 billion won in the second half.” He further stated, “Considering the category expansion effect from strengthening delivery competitiveness, the speed of on-platform transaction volume increase will likely be steeper than last year.”