‘Corporate Data Tycoon’ Douzone Bizon Continues to Break Record Highs Consecutively

[Asia Economy Reporter Eunmo Koo] The stock price of Duzon Bizon continues to rise, hitting record highs day after day. Analysts attribute the surge to new businesses based on big data accumulated over several years and growing expectations for the cloud market.

According to the Korea Exchange on the 29th, Duzon Bizon's stock closed at 114,500 KRW, up 4.57% (5,000 KRW) from the previous trading day. During the session, it rose to 116,500 KRW, setting a new 52-week high, continuing a four-day consecutive upward trend. Duzon Bizon has achieved a 30.2% return this month alone and has more than doubled (106.3%) since March 19, when the domestic stock market hit its low point, riding a strong upward momentum. With the stock price soaring, the market capitalization, which was 2.4034 trillion KRW at the end of last year, expanded to 3.3975 trillion KRW as of the previous day, increasing by about 1 trillion KRW in half a year.

With the amendment to the Data 3 Acts (Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act) set to take effect in August, there is growing anticipation that new businesses utilizing corporate big data will gain momentum, which is believed to be influencing Duzon Bizon's recent rise. Duzon Bizon, regarded as the company holding the most corporate customer data in Korea, plans to launch a 'Accounts Receivable Factoring Service' next month using the accumulated corporate data within the company. This service analyzes corporate management data through machine learning to evaluate and provide corporate credit information. So-hye Kim, a researcher at Hanwha Investment & Securities, forecasted, "Diligent small and medium-sized enterprises, which have faced difficulties in loan screening and financial costs, will be able to enjoy various financial benefits."

The market's growing expectations for cloud companies amid the impact of the novel coronavirus (COVID-19) have also bolstered the upward trend. Mina Lee, a researcher at Daishin Securities, said, "Due to COVID-19, demand for creating remote work environments for companies is increasing," adding, "The transition of existing enterprise resource planning (ERP) customers to the cloud is expected to accelerate, and sales of the 'WEHAGO' service are anticipated to expand after the comprehensive income tax filing in May." WEHAGO is an integrated information system that provides cloud-based services for Duzon Bizon's tax accounting offices and overall business operations. It consists of WEHAGO for general enterprises, WEHAGO T for tax accounting offices, and WEHAGO T Edge for clients of tax accounting offices.

Despite the impact of COVID-19 in the first quarter, Duzon Bizon has maintained 22 consecutive quarters of performance improvement and is expected to continue its growth in the second quarter, supported by new business growth such as cloud services. According to financial information provider FnGuide, Duzon Bizon's sales for the second quarter of this year are estimated at 72.4 billion KRW, a 16.8% increase compared to the same period last year. Operating profit for the same period is also expected to rise 19.2% to 18.1 billion KRW.

This content was produced with the assistance of AI translation services.