[Click eStock] VC's 'Golf Distance Meter' - Will the Stock Price Also Rise?

[Asia Economy Reporter Junho Hwang] Eugene Investment & Securities forecasted on the 10th that VC, a manufacturer of golf distance measuring devices, will achieve stable performance amid the booming golf industry.

VC's sales last year were 53.7 billion KRW, and operating profit was 8.4 billion KRW, achieving growth of 31.7% and 15.7% respectively compared to the previous year. Eugene Investment & Securities projected VC's expected performance for this year (consolidated basis) to be sales of 70.7 billion KRW and operating profit of 13.9 billion KRW, representing increases of 31.7% and 19.7% respectively year-on-year.

With the continuous increase in golf users, the demand for distance measuring devices is expected to grow at a compound annual growth rate (CAGR) of 19.4% until 2025. For simulators, the current penetration rate of domestic screen practice ranges is about 20%, and growth is expected as adoption rates increase in the future. Launch monitors have been supplied to the U.S. market by Swing Caddie since 2014, with 170,000 units sold last year.

Researcher Jongseon Park of Eugene Investment & Securities stated, "The current stock price is trading below the public offering price (15,000 KRW), and based on our estimated expected performance for this year, the PER is about 7.9 times." He added, "As of February, circulating shares after 1 month are 15.0%, and after 3 months are 5.8%, and it is understood that the 1-month shares are being released into the market."