The three Kakao brothers fell sharply again in the KOSPI market. Kakao and Kakao Pay recorded declines in the 2% range, while Kakao Bank fell more than 5%, breaking the record of ‘new low’ for 6 days in a row.
However, individual investors are intensively buying the three Kakao brothers in the recent downtrend. Some advise ‘It is better to avoid falling blades’, but there are others who raise the maxim ‘Only God knows the stock price’.
According to the Korea Exchange on the 14th, Kakao finished trading at 93,900 won, down 2,800 won (-2.90%) from the previous day. Kakao Bank fell 2550 won (-5.22%) to 46,300 won, and Kakao Pay fell 3,500 won (-2.38%) to 143,500 won, respectively.
At the end of last year, as it became known that Kakao Pay’s management exercised stock options and sold a large amount of its holdings, it seems that the entire Kakao group stock is adversely affected.
The biggest drop on the day was Kakao Bank. Compared to 94,400 won on August 18, which recorded a mid-day high, it fell by 51% and was cut in half. On the 11th, when the 50,000 won level collapsed, a resistance line was built at the 48,000 won level.
Foreigners are leading the decline in Kakao Group stocks.
Foreigners have sold 727.7 billion won worth of Kakao and 351.4 billion won worth of Kakao Bank this year. From the 4th to this day, it has been net selling for 9 consecutive trading days. Kakao Pay also sold 12.4 billion won.
On the other hand, individuals consistently contain the three Kakao brothers. This year, Kakao net bought 1.125 trillion won and Kakao Bank 416.8 billion won, respectively. Kakao Pay also included 89.4 billion won worth of money. Some analysts say they are buying at a low point, but there are also observations that it is a ‘water of tears’ to dilute the loss rate by lowering the average purchase price.
Securities analysts have a rather negative view of the three Kakao brothers.
As for Kakao, only Yvetes Investment & Securities, Samsung Securities, Korea Investment & Securities, NH Investment & Securities, Hanwha Securities, and DB Financial Investment lowered their target price this year due to poor 4Q performance. Even Kakao Pay Securities, a Kakao group company, lowered its target price for Kakao.
The average target price of Kakao on December 30th was 112,500 won, but it fell to 93,900 won as of that day.
In a Kakao report, Seong Jong-hwa, a researcher at eBest Investment & Securities, said, “The rally in platform stocks has come to an end, and the burden of discounting the valuation of growth stocks has increased in the face of rising interest rates. said.
In the case of Kakao Bank, no domestic securities companies have issued reports reflecting the downtrend. December 15th is the last report. Goldman Sachs recently downgraded Kakao Bank to ‘Sell’ and lowered its target price by 36.6% to 52,000 won. This is in contrast to the fact that the same type of banking industry, such as KB Financial, is attracting attention as a beneficiary of a rising interest rate.
An expert who requested anonymity said, “Kakao Bank has been controversial since its listing, and as a banking stock, it was given an excessively high valuation (corporate value) regardless of actual profits, so investors’ sentiment about ‘breaking out of the highs’ was strong.” “The fair value of Kakao Bank is likely to drop to the level of the public offering price considering the current profitability,” he said.
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