IBK Investment & Securities "Duzon Bizon Performance Improvement Continues"

Target Price Raised to 97,000 Won

[Asia Economy Reporter Lim Jeong-su] IBK Investment & Securities has raised the target price for Duzon Bizon to nearly 100,000 KRW per share. Thanks to the expansion of Enterprise Resource Planning (ERP) sales, the company recorded its highest quarterly operating profit in the fourth quarter of last year, and it is analyzed that both sales and profitability will improve this year through new product sales.

Lee Seung-hoon, an analyst at IBK Investment & Securities, said, "Duzon Bizon’s ERP sales are expected to increase significantly in the peak season of the fourth quarter of last year," adding, "The burden of fixed costs such as labor costs did not increase much compared to the growth in scale, so it will record the highest quarterly operating profit in history."

At the same time, the target price was raised to 97,000 KRW. The analyst explained the basis for calculating the target price, saying, "The target price was calculated by applying the average estimated Price-to-Earnings Ratio (PER) of 50.2 times for global Software as a Service (SaaS) companies to this year’s Earnings Per Share (EPS), which reflects sales from Duzon Bizon’s representative business platform 'WEHAGO.'"

In particular, it is expected that the fintech business based on WEHAGO and the next-generation ERP 'D_ERP' will lead performance improvements starting this year. He said, "With the recent passage of the three data-related laws through the National Assembly, the value of real-time ERP data held by Duzon Bizon will increase further," and predicted, "After the tax adjustment filing is completed in May, the number of customers will increase rapidly."

He also said, "'D_ERP' plans to strengthen upselling sales targeting existing customers of the enterprise-scale ERP 'ERP iU,' so there is a high possibility of additional orders," adding, "Consulting and external costs will decrease, improving overall profitability as well."