[Click eStock] "Alois, Hidden Beneficiary of Squid Game Syndrome"

[Asia Economy Reporter Ji Yeon-jin] IBK Investment & Securities forecasted on the 9th that Alois, an OTT (online video service) set-top box company, will see a clear surge in demand in the fourth quarter due to the winter holiday season and sports events in export target countries, expecting the company to record its highest annual performance this year.

Alois was listed on the KOSDAQ market in September 2019 through a merger with IBKS No. 9 SPAC. Its main product, the Android OTT Box, is a device that decodes video content and outputs the video through display devices such as TVs. This product not only offers excellent performance relative to its price but also has the advantage of being usable across multiple internet lines. Product sales are generated 100% from overseas regions, with the open market (general consumers) as the main market. As of the cumulative third quarter this year, sales by major export regions were Europe 52.2%, North America 30.7%, Middle East 5.9%, South America 3.2%, and Asia and other countries 7.9%.

As of the third quarter, sales increased by 81.3% year-on-year to 8.3 billion KRW, and operating profit rose by 160.5% to 1.5 billion KRW. High sales growth continued in advanced markets such as Europe and North America, and the expansion of new sales channels in the Asia region contributed to the growth in scale. Sales by major export regions recorded 4.3 billion KRW (+65.0%) in Europe and 2.5 billion KRW (+43.3%) in North America, while sales in Asia and other regions significantly increased year-on-year to 1.35 billion KRW.

Researcher Lee Hwan-wook of IBK Investment & Securities stated, "Funds raised through recently issued convertible bonds (CB) and bonds with warrants (BW) will be used to secure raw materials and recruit research personnel," adding, "It is expected that product competitiveness will continue to improve through quality enhancement in the future."