[Click eStock] "B2N, a Year of Turning Profitable"

Sangsangin Securities forecasted on the 14th that B2N will have a year of returning to profitability.

B2N operates in data consulting and solution businesses. As of last year, the sales composition was 73% data consulting and 26% solutions. Data consulting generates revenue through implementation/development, maintenance/operation management, consulting, and product sales, while data solutions mainly generate revenue through licenses, development/customizing, and maintenance.

Researcher Junho Lee of Sangsangin Securities stated in the report on the same day, “B2N's sales this year are expected to be 32.5 billion KRW, with an operating profit of 1.7 billion KRW,” and predicted that “the company will return to profitability by withdrawing from loss-making divisions such as the Gwangju branch last year.”

Researcher Junho Lee analyzed, “Additionally, two points to note are the improvement in cost structure and the pet business,” adding, “Due to the nature of the data industry, the skill level of personnel is important, and the proficiency of the staff hired in 2022 and last year is improving.” He explained that an improvement in the cost structure is expected due to the increase in proficiency.

Regarding the pet business, B2N is collaborating with Medicloud through its subsidiary Sus Korea, established on January 15. Based on Medicloud's technology, they are developing a pet urine diagnostic kit, and since the business is proceeding based on previously invested funds, no additional capital expenditure (CAPEX) is expected.

He explained, “The peer group is Wisetech, which recorded a loss based on last year's performance, making it difficult to judge relative undervaluation, but B2N's sales growth is noteworthy,” adding, “Wisetech's sales last year were 27.6 billion KRW, down 27%, while B2N's sales were 32 billion KRW, up 18%.”

He added, “This also demonstrates that B2N is gradually expanding its presence in the data market.”