[Click eStock] "Abko, Domestic PC Room Sales Recovery Expected from 2023"

[Asia Economy Reporter Jang Hyowon] SK Securities analyzed on the 7th that Abko is expected to gradually rebound due to reduced concerns about COVID-19 infections and new PC and console game releases by game companies. No investment opinion or target price was provided.

Researcher Lee Sojung of SK Securities said, "Abko holds over 80% market share in domestic PC bang gaming gear, and since sales of about 40 billion KRW were generated in 2019 when there was no impact from COVID-19, there is significant growth potential in sales to PC bangs. A gradual rebound is expected as new PC and console titles are released."

Abko is the leading gaming gear specialist company in Korea. It mainly sells keyboards, headsets, and mice. As of 2022, the sales composition was 68% domestic gaming gear, 22% charging stations, 5% home appliances, and 5% exports. Due to the decrease in the number and usage rate of PC bangs caused by the spread of COVID-19, the proportion of PC-related sales in gaming gear has declined. The small home appliance business, which has been operated since 2019, is being downsized.

Researcher Lee forecasted Abko’s 2023 expected performance to record sales of 125 billion KRW and operating profit of 6.5 billion KRW. He projected sales and operating profit to grow by 26% and turn profitable compared to the previous year, respectively.

He said, "The domestic smart school device charging station market size is estimated to reach 300 billion KRW, and Abko aims for a 50% market share. Abko’s order amount in 2022 was 20 billion KRW, and sales of around 30 billion KRW are expected from 2023."

He added, "Currently, charging stations for smart school devices are being supplied mainly in provincial areas, and the target regions will expand next year. Since the profit margin of device charging stations is higher than that of gaming gear, profitability improvement is expected along with external growth."