[Click eStock] "Ssangyong Information & Communications, PER at 4.3x Level... Lower Compared to Peers"

SSangyong Information & Communications is expected to achieve its highest annual performance again this year following last year, driven by the full-scale launch of its cloud business.

On the 15th, Eugene Investment & Securities released a report on SSangyong Information & Communications presenting this outlook.

SSangyong Information & Communications posted preliminary Q4 2022 consolidated results with sales of 148.7 billion KRW and operating profit of 11.9 billion KRW. These figures represent increases of 46.2% and 14.4%, respectively, compared to the same period last year.

For the full year, sales reached 325.2 billion KRW and operating profit was 9.7 billion KRW, marking increases of 34.1% and 51.1%, respectively, compared to the previous year, achieving the highest annual sales and operating profit margin in the company's history. This is the best annual performance to date.

The cloud segment led growth with sales increasing by 83.3% year-on-year. Other segments also showed an upward sales trend.

Eugene Investment & Securities estimates Q1 2023 sales of 78.8 billion KRW and operating profit of 1.1 billion KRW. Sales are expected to increase by 39.7% year-on-year, with operating profit turning positive.

Researcher Park Jong-sun of Eugene Investment & Securities said, "Based on approximately 2,000 cloud experts, the company is leading the high-profit cloud service provider (CSP) business," adding, "We expect additional benefits from the acquisition of LG Hitachi and the cloud technology specialist company Cloit."

Park also noted, "The current stock price is trading at a PER of 4.3 times based on 2023 earnings, which is significantly discounted compared to the domestic peers and similar companies (Samsung SDS, POSCO ICT, Lotte Information & Communication, Hyundai AutoEver) average PER of 16.2 times."