[Click eStock] "Coverage Resumed with Duzon Bizon Target Price at 70,000 Won"

Shinhan Investment Corp. announced on the 1st that it is resuming coverage on Douzone Bizon with a target price of 70,000 KRW and a buy rating.

Researcher Byunghwa Lee of Shinhan Investment Corp. stated, "The target price is based on a 2024 earnings per share (EPS) of 1,408 KRW and a target price-to-earnings ratio (P/E) of 47.3 times," adding, "The target multiple is the average valuation from 2019 to 2023."

Researcher Lee named Douzone Bizon as his top AI software stock pick, noting that it is a period where core business growth, cost control, and new business ventures are all aligning.

He said, "The conversion speed of Amaranth 10, which has clear effects on price increases and profitability improvement, is steep, and cost efficiency and profitability strategies were confirmed by last year's operating profit margin improvement," adding, "Entry into the AI fintech market is within sight, and Techfin Ratings (a joint venture with Douzone Bizon 46%, Shinhan Bank 45%, and SGI Seoul Guarantee 9%) applied for the official business license for corporate rating services last February."

Shinhan Investment Corp. forecasts Douzone Bizon's sales this year to be 412.7 billion KRW and operating profit to be 81 billion KRW. It also expects this year to be a turning point from discount to premium valuation.

Researcher Lee explained, "The Techfin Ratings performance is excluded from these results," and added, "Considering it is an early-stage business, the stock price is expected to reflect the anticipation of the fintech business rather than financial performance."

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