NH Investment & Securities has raised its target price for NHN from 85,000 won to 110,000 won, citing expectations for long-term growth driven by the expansion of its artificial intelligence (AI) data center and the full-scale launch of its NeoCloud business. The firm anticipates significant performance growth through 2028, following the completion of a 100MW AI data center by the end of 2027, which will enhance GPU-based infrastructure.
Analyst Ahn Jae-min stated, "We plan to complete a 100MW AI data center by the end of 2027 to expand our GPU-based infrastructure. The NeoCloud business, which is a new growth driver for the company, is expected to gain significant momentum."
With the expansion of its AI infrastructure, NH Investment & Securities estimates that NHN's revenue will reach 3.4 trillion won in 2027, a 13.1% increase from the previous year, while operating profit is projected to rise by 35.2% to 281.3 billion won. By 2028, when the 100MW data center becomes fully operational, revenue is expected to grow to 4.1 trillion won, with operating profit increasing by 24.8% to 350.9 billion won.
NHN plans to expand its data center capacity to 100MW by the end of 2027. Currently, it is expanding its infrastructure from its bases in Pangyo, Gwangju, and Yeongdeungpo to include locations in Gasan, Incheon (6MW), Pohang (20MW), Jangseong (10MW), and Jangseong Pine (26MW).
Ahn noted, "The water-cooled AI data center in Yeongdeungpo has recorded strong sales due to high AI demand, despite using B200 GPUs. The data center set to be completed in 2027 will introduce B300 GPUs, which will further increase revenue per MW."
Third-quarter results were also strong, with revenue of 758.3 billion won, a 21.2% increase year-over-year, and operating profit of 58.8 billion won, up 112.6%. The operating profit aligned with the previous estimate of 59.9 billion won.
Ahn added, "Revenue from technology services reached 171.7 billion won, a 53.6% increase, driven by the 100% reservation rate at the Yangpyeong data center, contributing significantly to revenue growth. The operating profit margin is around 30%, which has greatly contributed to profitability."
* This article has been translated by AI.
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