Hecto Financial posts revenue in the 50 billion won range for a third straight quarter on the back of growth in its simple cash payment service, and securities firms say it has room for additional growth as the stablecoin and AI commerce markets expand.

Eugene Investment & Securities said in a report on Monday that Hecto Financial’s second-quarter results met market expectations and that it is expected to benefit from the commercialisation of stablecoins at home and abroad and the expansion of the AI commerce market.

Hecto Financial’s preliminary consolidated revenue for the second quarter is 50.1 billion won, up 12.6 percent from a year earlier. Operating profit is 4.6 billion won, up 20.2 percent over the same period. Revenue stays in the 50 billion won range for three consecutive quarters.

Eugene Investment & Securities analyst Park Jong-sun (박종선) said the simple cash payment service drove earnings growth. Second-quarter revenue from the service rises 29.8 percent from a year earlier.

Park said, "New cross-border customer inflows and a growing share of high-margin services based on our own membership programme, including 'Naetongjang Payment', contributed to revenue growth and improved profitability."

It forecast that revenue and operating profit growth would continue in the third quarter. Eugene Investment & Securities estimates Hecto Financial’s third-quarter consolidated revenue at 52.6 billion won and operating profit at 5.5 billion won. That is up 15.0 percent and 21.7 percent, respectively, from a year earlier.

It cited stablecoins and the AI-based payments market as medium- to long-term growth drivers. Hecto Financial joined a global stablecoin payment network earlier this year and is building infrastructure to expand the business in line with updates to related laws and systems in South Korea.

It has also recently participated in 'x402', a global standards project related to AI agent payments. Eugene Investment & Securities said the company is responding to the expansion of the AI commerce market by linking its existing payment and settlement infrastructure with a global stablecoin payment network and payment standards.

Eugene Investment & Securities maintained a buy rating on Hecto Financial. It cut its target price to 30,000 won from 50,000 won.

Park said, "We expect benefits from the full-scale commercialisation of the stablecoin market at home and abroad and the expansion of the AI commerce market," adding, "We believe further gains in the share price will be possible."