MZ Generation Hooked on Golf...The Rise of 'Screen Golf'

No.1 Golfzon All up 103.2%... KakaoVX rapidly chasing with 'turning to profit'

[Asia Economy Reporter Park Jihwan] With the entry of the MZ generation (Millennials + Generation Z), the popularization of golf is accelerating, drawing increased attention to screen golf companies Golfzon and Kakao VX. The securities industry is releasing reports with positive outlooks on the screen golf market, noting differentiated growth compared to other industries despite operational restrictions due to social distancing, and raising target stock prices for related companies.

According to the securities industry on the 31st, the stock price of Golfzon, the number one screen golf company, has risen 103.2% so far this year until the day before. This is interpreted as reflecting increasingly significant improvements in performance over time. In the second quarter of this year, Golfzon's sales reached 105.8 billion KRW, a 46.5% increase compared to the same period last year. Operating profit also surged 113.0% to 30 billion KRW.

The indoor golf practice system 'GDR Academy,' which has become Golfzon's flagship product, recently surpassed 100 stores nationwide and 40,000 members. As of the end of July, this is an increase of more than 10,000 members compared to the same period last year. The number of new franchise stores also showed a clear upward trend each quarter, growing from 1,309 at the end of June last year to 1,530 at the end of March this year, marking a 17% growth rate. Target stock prices continue to be raised as well. NH Investment & Securities raised Golfzon's target price by 25%, from 160,000 KRW to 200,000 KRW, and Meritz Securities increased it by 28.6%, from 140,000 KRW to 180,000 KRW.

Kakao VX, the industry's second-largest company, is also striving to expand its market share and is closely pursuing Golfzon. Last year's sales reached 55.3 billion KRW, showing a 35.5% growth compared to the previous year. Operating profit turned positive for the first time. To invest in the unlisted company Kakao VX, attention should be paid to Kakao Games, which holds an 82.2% stake. Kakao Games' other sales in the second quarter of this year, driven by its subsidiary Kakao VX, recorded 26.4 billion KRW, a 65.7% increase compared to the same period last year due to the golf industry's boom.

The securities industry is focusing on the growth potential of the screen golf market. According to the Korea Golf Course Management Association, the number of golf course users in Korea was 46,736,741 last year, a 23.1% increase from 37,937,952 two years ago. If the current upward trend continues, this year is expected to reach the 50 million user era. Analysts note that the rapid growth continues as golf beginners, mainly in their 20s and 30s, surge. Jinhee Kim, a researcher at NH Investment & Securities, said, "The burden of using outdoor golf courses will influence the growth of the popular screen golf market," adding, "With the lifting of operating hour restrictions, usage time is increasing, and the fee without green fees is expected to enable sustained growth even in the With-Corona era."

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