[Click eStock] "Abko, the Biggest Beneficiary of Reopening"

[Asia Economy Reporter Jang Hyowon] Cape Investment & Securities analyzed on the 31st that Abko will show significant earnings growth starting from the 3rd quarter of this year, with the 2nd quarter marking the complete lifting of social distancing measures.

Researcher An Juwon of Cape Investment & Securities said, "With the lifting of social distancing and the resumption of 24-hour operations at PC bangs, the daily usage rate of PC bangs is noticeably increasing," adding, "As reopening leads to the need for PC bang refurbishment such as gaming gear replacement, demand is expected to rise, resulting in increased sales."

Researcher An forecasted that Abko will record sales of 133.5 billion KRW and operating profit of 10.7 billion KRW this year. Compared to the previous year, sales are expected to grow by 31.1%, and operating profit is expected to turn positive.

Specifically, gaming gear sales are estimated to increase by 5% year-on-year to 97.5 billion KRW, and ICT sales are projected to surge by 923% year-on-year to 30 billion KRW. Starting with this year's performance turnaround, clear growth is expected next year.

He said, "Last year, when there were no offline classes, ICT sales declined compared to the previous year, but as schools nationwide have resumed in-person attendance, orders have been coming in since the first quarter, and sales expansion is expected to increase quarter by quarter."

Furthermore, he stated, "The small home appliance sector, which grew due to COVID-19, has seen intensified competition and a significant increase in related costs such as advertising expenses," adding, "Although sales decreased last year and performance was sluggish, all factors burdening profitability have been eliminated, so improvement is expected starting this year."