Duzon Bizon Reports Q2 Operating Profit of 12.2 Billion KRW, Down 40.4% YoY

[Asia Economy Reporter Jang Hyowon] Duzon Bizon (CEO Kim Yongwoo) announced on the 27th through its Q2 earnings disclosure that it achieved consolidated sales of 74.9 billion KRW and operating profit of 12.2 billion KRW. Compared to the same period last year, sales decreased by 7.2% and operating profit decreased by 40.4%.

Despite solid order performance this quarter, domestic and international issues such as labor shortages and COVID-19 delayed system construction, impacting sales decline. A base effect from the peak season of government-supported projects in Q2 last year also played a role. Additionally, since most costs are fixed costs, the sales decline inevitably led to a decrease in operating profit, resulting in somewhat disappointing performance.

However, profitability is expected to improve as sales recover in the second half of the year. The fundamentals are solid, and there is sufficient momentum for performance improvement in core businesses, so the outlook is positive. A company official explained, “As IT investments by companies, which were delayed due to increased economic uncertainty, recover, deferred contracts are being signed one after another, which will have a positive impact on future performance rebound.”

In particular, performance improvement is expected to be driven mainly by the ERP business. This is because the order growth trend is becoming clear thanks to benefits from compliance issues under the new External Audit Act and the expanded application of the new implementation methodology (FoEX). In fact, the company has proven its competitiveness in the public and enterprise markets by successfully opening the next-generation ERP system for Korea Gas Technology Corporation, a leading case of domestic ERP adoption in large public institutions, and successfully completing the next-generation consolidated settlement system project for H, the largest domestic automobile group.

Amaranth 10 is expected to lead performance as it begins to deliver tangible results. Since its product launch, it has been steadily enhancing its features, verifying market competitiveness, and securing various references across industrial sectors. To discover new revenue models, the company is actively expanding its customer market through collaborations with Shinhan Bank, SK Telecom, and others, which is expected to positively impact performance starting in the second half of the year.

New businesses are also becoming visible. Innovative services based on cloud, big data, and artificial intelligence, such as precision medical big data and healthcare solutions, are being concretized. Additionally, through diverse platform experiences such as participating as a sales receivables factoring operator for the Small and Medium Business Corporation, new business expansion centered on local governments and public institutions is anticipated. The launch of a ‘corporate finance specialized platform operator based on accounting and ERP data’ through a joint venture with Shinhan Bank is also attracting market attention.

A Duzon Bizon official stated, “We are laying the foundation for sustainable growth through innovation in core business areas,” adding, “The growth momentum of existing businesses remains valid, and the revenue contribution effect of new businesses is expected to become visible, making a performance rebound in the second half possible.”