[Click eStock] "Duzon Bizon Achieves Double-Digit Earnings Growth... Signal for Stock Price Upturn"

[Asia Economy Reporter Park Jihwan] Eugene Investment & Securities maintained a 'Buy' rating and a target price of 121,000 KRW for Douzone Bizon on the 28th, stating that quarterly earnings have turned to double-digit growth, raising expectations for earnings growth and the possibility of future stock price appreciation.

Park Jongseon, a researcher at Eugene Investment & Securities, said, "The preliminary consolidated results for the second quarter showed sales of 80.6 billion KRW and operating profit of 20.4 billion KRW, representing increases of 10.2% and 16.2% respectively compared to the same period last year, marking a shift to double-digit earnings growth." However, these figures fell short of market expectations of 87.6 billion KRW in sales and 23.5 billion KRW in operating profit.

One positive aspect of the second-quarter results is that despite the ongoing COVID-19 situation, sales and operating profit have maintained an upward trend for 27 consecutive quarters compared to the same period last year. Due to a continuous increase in cloud customers, cloud business sales rose 60.6% year-over-year. The number of customers grew sharply from approximately 25,000 at the end of December last year to 27,500 at the end of March and 31,000 at the end of June. It is expected that the high earnings growth will continue into the third quarter as applications for the non-face-to-face service voucher support project will be continuously reflected.

The forecasted third-quarter results are sales of 81.4 billion KRW and operating profit of 22.4 billion KRW, representing increases of 11.4% and 38.9% respectively compared to the same period last year, indicating a continuation of stable growth. Researcher Park Jongseon emphasized, "The delayed government voucher support project will continue into the third quarter following the second quarter, leading to double-digit sales growth and a significant improvement in profitability."

He added, "The government's voucher support project is driving increased sales from WEHAGO customers and sustained growth in cloud sales," and "With quarterly earnings turning to double-digit growth, expectations for earnings growth suggest that the stock price could turn upward in the future."

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