[Click eStock] "Abko, PC Bang Business Normalization... Expecting Increase in Gaming Gear Sales"

NH Investment & Securities Report

[Asia Economy Reporter Minji Lee] NH Investment & Securities forecasted on the 19th that Abko is expected to benefit from the normalization of PC bang operations following the full lifting of social distancing measures.

Abko is the leading gaming gear company in South Korea. It sells a variety of gaming gear centered on gaming keyboards, including headsets, mice, and PC cases. The company has also entered the small home appliances market with its 'Oella' brand and supplies products for the smart device charging locker business, which is part of the Smart School project.

Abko, which holds nearly 80% market share in PC bang gaming gear, saw its PC bang gaming gear sales decrease by 16.4% last year due to sluggish PC bang performance and a slowdown in PC replacements. However, this year, sales are expected to grow by 13.4% due to the full lifting of social distancing measures. Researcher Sim Eui-seop of NH Investment & Securities stated, “PC bang utilization rates are also recovering, and if the relaxation of quarantine guidelines continues through the peak summer vacation season, the PC bang business will recover again,” adding, “Benefits are also expected from new PC bang startups and increased infrastructure investments.”

Additionally, due to recent price drops in graphics cards, Windows 11 updates, and the transition to DDR5, demand for home PC replacements is also expected to increase, which is anticipated to bring further benefits.

The company's projected sales for this year are 125 billion KRW, with an operating profit of 11 billion KRW. Sales are expected to increase by 22.8%, and operating profit is expected to return to profitability. Researcher Sim said, “An improved business environment, workforce efficiency, and cost structure improvements due to the downsizing of the small home appliances business are expected to create an operating leverage effect,” adding, “Both performance and stock price have passed their lows, and quarterly performance improvements are expected.”

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