[Click eStock] "ITCEN, Solid AI and Cloud Business Alongside Gold"

On the 17th, KB Securities analyzed that ITCEN is experiencing solid growth not only in its stable gold exchange business but also in its artificial intelligence (AI) and cloud businesses.

In a report on the same day, KB Securities researcher Lim Sang-guk stated, “Due to the aftershocks from recent U.S. interest rate hikes and continued tightening, financial market instability is increasing with the collapse of the U.S. SVB (Silicon Valley Bank), Signature Bank, and the Credit Suisse (CS) crisis. This has led to a sharp rise in preference for safe assets such as U.S. Treasury bonds, the dollar, and gold assets.”

Researcher Lim Sang-guk noted, “ITCEN operates a gold trading platform business through ‘Korea Gold Exchange Three M (holding 67.2% stake)’ and expects the attractiveness of gold to increase for the time being due to financial market instability and growing demand expectations from China (reopening).”

Along with operating the gold exchange, ITCEN is accelerating its cloud business by leveraging its IT technology know-how. Lim said, “Through accumulated IT technology expertise in public and private SI projects, the cloud business is accelerating, and expectations for performance growth are increasing. Strengthening cloud capabilities through acquisitions such as LG Hitachi and Cloit, and expanding from primarily public projects to private sectors including finance and enterprise, growth is anticipated.”

New growth drivers include AI, cloud, and token securities (STO). He explained, “Big data is essential for AI training, and the AI storage market related to this is expected to expand. Its subsidiary Comtec System has acquired exclusive domestic distribution rights and Asian distribution rights for VASTDATA, which is expected to benefit from the expanding AI market.”

He added, “With capabilities in AM-centered cloud MSP business in the evolving digital market, growth as a total cloud service company is expected.”

Furthermore, he said, “There is a possibility of entering the gold-based STO (token securities) business in the future through the technology and competitiveness of the current gold trading distribution business. As Korea’s first raw material STO business based on physical gold, its growth value is expected to be highlighted.”