Hana Securities announced on July 28 that while Naver's NeoCloud new business is becoming more visible, the related expectations have not been fully reflected in the company's value. The firm maintained its target price at 400,000 won and its investment opinion at 'buy.'
Lee Jun-ho, a researcher at Hana Securities, stated in a report that "customer and revenue contracts are expected to be disclosed within the third quarter, and the deal closings with NVIDIA and Brookfield are anticipated to occur."
He noted that Naver disclosed its equity investment from NVIDIA on July 27, explaining that the capital increase will be conducted through a third-party allocation, amounting to 1.48 trillion won.
Lee added, "A significant change from the previously anticipated structure of the NeoCloud new business is that the investment is made directly into Naver rather than through a newly established special purpose company (SPV). This means Naver can fully secure the profits from the AI data center, which is noteworthy."
He emphasized that it is now time to consider how quickly the company can achieve its 1GW target, rather than just the feasibility of the first phase of the project. He also mentioned that the merger between Naver Financial and Dunamu is scheduled for December 31.
Lee pointed out that the enactment of the Digital Asset Basic Law and the Fair Trade Commission's review process have caused delays, resulting in expectations not being reflected in the company's value. However, he stressed that it is important to recognize that the industry is advancing.
He noted that traditional financial institutions and fintech companies in South Korea have actively announced new business plans related to digital assets, including real-world assets (RWA), since July. He predicted that once the procedures are finalized and the merger becomes visible, Naver's competitiveness as a key player will be highlighted.
* This article has been translated by AI.
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