韩国互联网与Naver：感谢Jensen；Naver目标价上调至33万韩元

Min-Joo Kang+852 2123 2644minjoo.kang@bernsteinsg.com Robin Zhu+852 2123 2659robin.zhu@bernsteinsg.com Charles Gou+852 2123 2618charles.gou@bernsteinsg.com Price Target 035420.KS 330,000 KRW(290,000OLD) Hyrum Caesar+81 3 6777 6979hyrum.caesar@bernsteinsg.com Korea Internet & Naver: Thank you, Jensen; Naver PT to 330K Naver’s bold reinvention.Naver is pursuing the most ambitious transformation in itshistory, pivoting toward a B2B AI factory model. The strategy centers on leveraging its searchand cloud software strengths to run high-utilization GPU data centers and capture Asia’saccelerating AI compute demand. Management is targeting 40-50 trillion won in grouprevenue within five years, with roughly 20 trillion won expected from new AI factory and AI-driven businesses. At scale, the AI factory alone is expected to deliver margins of about 20%. Close Date8 Jun 2026035420.KS Close Price (KRW)288,500Price Target (KRW)330,000Upside/(Downside)14%52-Week Range307,000/190,800ASIAX1,975.13FYEDecDiv Yield0.9%Market Cap (KRW) (B)45,258.08EV (KRW) (B)42,634.91 AI factory: from zero to 1GW.Naver is accelerating its AI buildout, targeting 100MW byend-2027 and doubling to ~200MW in 2028 via leased capacity in Korea. Over the next fiveyears, it aims to scale to 1GW through a mix of 200MW secured leases, 200MW at its Sejongdata center, another 200MW of new leases, and ~300MW of greenfield projects. Capital structure and external funding.Management estimates 1GW of AI factorycapacity will require 40-60 billion USD of total capex, broadly in line with global benchmarkswhere GPU costs are the dominant component. Naver plans to inject 1 billion USD of equityfunded by internal cash flow into a special purpose vehicle for the initial 200MW phase,match that with 1 billion USD from a strategic partner, and raise the remaining funding fromPE and debt investors, with the debt largely off Naver’s own balance sheet. Customer visibility and margin ambition.Naver says a potential anchor customer isalready in sight, and a single client could fully absorb the first 200MW phase by 2028 and iswilling to take more capacity if available. Management argues that securing long-term, large-scale contracts for the initial 200MW will effectively lock in 20% margins or better for the AIfactory, a level it says is higher than Naver’s current group margin. Why NVIDIA is partnering with Naver.Naver is positioning itself as NVIDIA’s key AI-native cloud partner outside the US. For NVIDIA, the partnership offers a strong non-US ally with deep software and search capabilities that can inform chip and data centerinnovation. For Naver, the upside lies in privileged access to cutting-edge GPUs and NVIDIA’sCosmos platform, enabling joint development across AI models, physical AI, and sovereign AIsolutions. Investment Implications DETAILS Investment Implications We raise our PT for Naver to 330K, driven by a 2-7% uplift in 2027-2029 EPS and a higher target multiple of 20x (from 18x),reflecting a stronger earnings growth profile. Incorporating management’s guidance of an incremental KRW20tn revenue opportunity by 2031-2032, we lift 2027-2028revenue estimates by 6-19% to reflect the AI data centre build-out. With partners secured for the initial 200MW capacity overthe first two years, revenue visibility is improving, alongside a targeted 20% OP margin at scale. Our AI factory modelling is anchored on compute capacity and revenue per GW, benchmarked against global peers (c.KRW20tnper 1GW), with quarterly ramp-up and utilization assumptions. On the cost side, we model CapEx based on incremental AIserver installations, applying a five-year depreciation schedule and deriving quarterly depreciation, in line with China cloudpeers such as Alibaba. We assume a 20% long-term margin profile by 2031-2032, translating into c.30% incremental cloud EBITDA margin netof GPU depreciation. Earnings contribution from the AI factory is expected to accelerate meaningfully as scale builds into2031-2032. Naver’s shift to a capital-intensive B2B model may weigh on operating margins. Despite strong top-line growth expectations,we factor in softer margin assumptions due to the transition from high-margin digital advertising to a cloud business with higherdepreciation costs. KOREA INTERNET & NAVER: THANK YOU, JENSEN; NAVER PT TO 330K EXHIBIT 1:Naver is rapidly expanding its AI data centre buildout, aiming to reach 100MW by end-2027 and scale upto 1GW within 5 to 6 years. EXHIBIT 4:We modelled Naver’s operating margin todecline over the next few years, driven by a slowdown inhigh-margin digital advertising revenue and the burdenof GPU depreciation. EXHIBIT 3:Incorporating management’s guidance ofan incremental KRW20tn revenue opportunity by2031-2032, we lift 2027-2029 revenue estimates by8-38% to reflect the AI data centre build-out. APPENDIX - FINANCIAL FORECASTS Source: Corporate reports, Bernstein estimates and analysis. BERNSTEIN TICKER TABLE I. REQUIRED DISCL