[Click eStock] "Strong Momentum from Performance and AI" Douzone Bizon

Business software specialist Duzon Bizon is gaining attention for its strong performance and expansion of AI services.

On the 7th, IBK Investment & Securities maintained a buy rating and a target price of 110,000 won for Duzon Bizon, stating, "With improvements in business and financial soundness and the addition of full-scale AI services, we expect growth beyond the past expansion of cloud services," despite the high stock price.

Duzon Bizon announced that it recorded 111.5 billion won in sales and 29.4 billion won in operating profit for the fourth quarter based on consolidated financial statements the previous day. These figures exceed the securities consensus of 108.2 billion won in sales and 24.3 billion won in operating profit. IBK Industrial Bank analyzed that operating profit margin improved by 2 percentage points year-on-year due to cost efficiency.

Analyst Lee Seung-hoon said, "AI combined with existing Enterprise Resource Planning (ERP) services and cloud is expected to create strong synergy," adding, "From the customer's perspective, the more the service lineup expands with various modules and groupware beyond standalone ERP use, the higher the AI utilization, so an increase in AI subscription fees is expected with service expansion." IBK Investment & Securities identified that Duzon Bizon's AI service, launched in June 2023, had accumulated about 2,300 contracts as of the end of last year.

Meanwhile, Duzon Bizon decided on a cash dividend of 477 won per common share and 4,861 won per preferred share the previous day. The total dividend amount is approximately 18.7 billion won.