[Click eStock] "BusinessOn, Full-Scale External Growth... Stock Price Rise Expected"

Yuanta Securities Report

[Asia Economy Reporter Minji Lee] Yuanta Securities expressed on the 3rd that BusinessOn's stock price could show an upward trend this year based on stable growth in the electronic tax invoice and big data sectors.

BusinessOn's estimated revenue for last year is 16.9 billion KRW, expected to increase by 8% compared to the previous year. Operating profit is estimated to have decreased by 6% to 5.8 billion KRW. In the 4th quarter, revenue and operating profit are expected to have recorded 5.0 billion KRW and 1.6 billion KRW, respectively, which are increases of 21% and 10% compared to the same period last year.

This year, the company's estimated revenue and operating profit are expected to have grown by 80% and 62% year-on-year to 30.4 billion KRW and 9.4 billion KRW, respectively. Jin-hyung Park, a researcher at Yuanta Securities, explained, "Stable growth in the electronic tax invoice business sector and visible growth in the big data sector are expected, along with the consolidated reflection of the performance of the acquired company 'Planit Partners.'"

The electronic tax invoice sector is generating stable results with annual sales in the 10 billion KRW range. Its strengths lie in having a strong customer base of about 3.5 million people and a vast data foundation. Sales are expected to increase further through the construction and sales of integrated solutions such as value-added tax, withholding tax, and business suspension filtering.

The big data sector provides real-time big data analysis information services based on a cloud platform. It is used for client companies' risk management of business partners, accounts receivable management, discovery of new business partners, and market research. Researcher Park said, "Because it provides real-time data, it is a powerful solution expected to continuously generate additional sales."

Synergies with companies acquired last year are also expected to become visible. Last year, the company acquired Planit Partners to strengthen its big data business and GloHands, an electronic contract service platform company.

This year, BusinessOn's stock price is expected to rise based on business expansion and performance improvement. Researcher Jin-hyung Park said, "Since the second half of 2018, BusinessOn's stock price has stagnated and traded within a long-term box range due to stagnant performance. This year, business expansion and performance improvement are expected, and as it is the third year since the major shareholder change, stock price appreciation can be anticipated."