[Click eStock] "VC Targets the US, the Home of Golf... Undervalued Status"

[Asia Economy Reporter Jang Hyowon] Korea Investment & Securities analyzed on the 16th that investment focus should be placed on the growth of VC due to the acceleration of its entry into the U.S. market, and that its current market capitalization is undervalued.

Choi Moonseon, a researcher at Korea Investment & Securities, stated in a report on the same day, “Among domestic companies, those entering the U.S. B2C market are very few, except for large corporations like Samsung and LG,” and explained, “VC has entered the U.S. market starting with the ‘Voice Caddie’ product, followed by laser-type distance meters and launch monitors.”

He added, “From this year, the simulator VSE has also joined, and with synergy from ‘SuperStroke,’ the U.S. market penetration will be strengthened.”

VC is a golf IT device company established in 2005 and listed in February this year. Leading with various types of distance meters such as voice-type, watch-type, and dedicated measuring devices, it expanded its business area by launching a golf simulator (VSE) in 2021. This year, it invested in shares of ‘SuperStroke,’ the global No.1 putter grip company. Starting with distance meters, it newly entered the simulator business and is now diversifying into golf equipment.

Researcher Choi said, “Based on the brand awareness of SuperStroke, the company has secured a foundation to grow from a company that makes good distance meters to a company that manufactures golf equipment,” and forecasted, “Since acquiring shares last September, growth through synergy creation will begin in earnest in 2023.”

For example, it is analyzed that by utilizing the company’s representative brand ‘Voice Caddie,’ it has become easier to enter new businesses such as launching caddy bags in collaboration with SuperStroke.

Furthermore, he said, “Operating profit in the third quarter was 830 million KRW, a 76% decrease compared to 3.37 billion KRW in the second quarter, mainly due to an increase in development personnel and R&D expenses,” and judged, “Investment focus should be on growth driven by accelerated U.S. market penetration rather than current performance, and considering this, the current market capitalization of less than 50 billion KRW is undervalued.”