[Click e Stocks] "ITCEN, Benefiting from Digital Economy and Cloud Acceleration"

[Asia Economy Reporter Hyungsoo Park] On the 17th, KB Securities analyzed that ITCEN has attractive earnings and momentum, including accelerated cloud adoption, the highlighted value of the safe asset 'gold,' and expected entry into the blockchain business.

ITCEN is an IT system integration (SI) company. It has subsidiaries such as Comtec System, Ssangyong Information & Communications, Secuzen, and KGE Holdings. In August 2018, it acquired Korea Gold Exchange 3M and operates a gold (Gold) trading platform business.

Researcher Sangguk Lim of KB Securities explained, "Expectations for earnings improvement are growing due to the acceleration of public and private cloud businesses and entry into new growth businesses," adding, "A favorable environment is being created with the new government's promotion of the digital economy and expansion of cloud infrastructure."

He continued, "The cloud transition construction can improve earnings through a subscription-based revenue model centered on operations and consulting, in contrast to the existing SI's low-price bidding orders."

He analyzed, "The gold exchange is growing significantly," and added, "The rise in gold prices is leading to an increase in trading volume." Furthermore, "As of the 11th, the cumulative sales of the gold exchange reached 357.4 billion KRW," noting, "Demand for gold, a safe asset, is increasing amid financial market uncertainties such as the Ukraine crisis and inflation concerns."

Last year, ITCEN recorded sales of 3.2 trillion KRW and operating profit of 31.3 billion KRW, representing increases of 43.7% and 114.4%, respectively, compared to the previous year. Korea Gold Exchange achieved sales of 2.6 trillion KRW and operating profit of 15 billion KRW.

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