[Click eStock] "Duzon Bizon, Significantly Exceeds Market Expectations... Target Price Up"

On the 7th, Eugene Investment & Securities raised the target price of Douzone Bizon from 38,000 KRW to 57,000 KRW, stating that the company's fourth-quarter earnings last year significantly exceeded market expectations.

Douzone Bizon announced that its fourth-quarter sales and operating profit last year were 103.2 billion KRW and 22.9 billion KRW, respectively. This represents increases of 35.2% and 200.9% compared to the same period last year, greatly surpassing market expectations of 86.2 billion KRW in sales and 17.3 billion KRW in operating profit.

In a report on the same day, analyst Park Jong-seon of Eugene Investment & Securities analyzed, "The significant increase in sales compared to the same period last year was due to the reflection of the performance of the electronic newspaper company acquired last year and growth in sales related to the existing ERP business."

Analyst Park also noted, "A positive aspect of the fourth-quarter results is the significant improvement in profitability," adding, "Along with consistent cost control effects, the application of an AI-based development platform to reduce development costs likely led to a decrease in outsourcing expenses."

He forecasted, "The expected performance for the first quarter of this year is sales of 104.9 billion KRW and operating profit of 21.8 billion KRW, representing increases of 29.7% and 54.9% year-on-year, continuing the recovery trend," and added, "With stable growth across all business divisions and the application of the development platform 'GEN AI DEWS' to reduce development costs, profitability is expected to improve."