Investment Rating - The report assigns a "Buy" rating to Naver Corp with a 12-month price target of Won290,000 [5][6]. Core Insights - Naver is navigating challenges posed by generative AI in non-commercial search categories, where it holds a significant market share in commercial searches [2]. - The company is shifting its eCommerce strategy to focus on a seller-centric model, enhancing logistics competitiveness and reducing seller costs by 20-25% [4]. - Ad revenue growth is expected to normalize to mid-single digits in the long term due to market saturation [3]. Financial Performance - Naver's revenue is projected to grow from Won10,738 billion in 2024 to Won12,021 billion in 2025, with net earnings increasing from Won1,923 billion to Won2,174 billion in the same period [8]. - The company's diluted EPS is expected to rise from Won12,914 in 2024 to Won14,599 in 2025 [8]. Market Position - Naver maintains an 80% market share in commercial searches, while Google dominates non-commercial queries with approximately 60% [2]. - The company is adapting to the competitive landscape by prioritizing its Plus Store and enhancing its logistics capabilities [4]. Valuation Metrics - The report indicates a forecast price appreciation of 55.5% and a forecast dividend yield of 0.8%, leading to an overall forecast stock return of 56.3% [9]. - Naver's market capitalization is noted at Won28,207 billion (approximately US$20.5 billion) [6]. Revenue Segmentation - In 2024, Naver's major revenue segments are expected to be Search Platform (37%), Commerce (27%), Fintech (14%), Content (17%), and Cloud (5%) [10].