[Click eStock] "Abko, Both Earnings and Stock Price at Bottom"

[Asia Economy Reporter Hyungsoo Park] Cape Investment & Securities forecasted on the 17th that Abko will start a performance turnaround this year and show clear growth next year. They judged that both performance and stock price are at their bottom.

Researcher Juwon An of Cape Investment & Securities estimated that Abko will achieve sales of 118.6 billion KRW and operating profit of 9.5 billion KRW this year. Sales are expected to increase by 16.5% compared to last year, and operating profit will turn positive. Gaming gear sales are expected to reach 97.5 billion KRW, up 5% year-on-year, and ICT sales are expected to increase by 415% to 15.1 billion KRW.

Researcher An explained, "With the lifting of social distancing, 24-hour operations of PC bangs have resumed, and PC bang usage rates are noticeably rising," adding, "As PC bangs require reorganization such as gaming gear replacement after reopening, demand is increasing, which will lead to higher sales."

He continued, "The smart device charging station business, which had almost no orders last year, is now receiving orders from the first quarter as school attendance has resumed, and sales expansion is expected to grow quarter by quarter."

Furthermore, he added, "The small home appliance sector, which grew during COVID-19, has seen intensified competition and increased related costs such as advertising expenses," and "Although sales decreased last year resulting in poor performance, all factors burdening profitability have been removed, so improvements are expected starting this year."

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