[Click eStock] "ITCENETEC, Undervalued with AI Cloud Computing Momentum"

Independent research firm Valuefinder analyzed on the 28th that ITCEN NTEC is undervalued and also has momentum benefiting from artificial intelligence (AI) cloud computing.

The company was established in 1981 and listed on the KOSDAQ market in 2000 as a system integration (SI) specialist company. The current largest shareholder is Comtec System (holding 38.09%), and it is an affiliate of the ITCEN Group. The ITCEN Group completed its new headquarters in Gwacheon last November, with affiliates moving in, and accordingly, the affiliates changed their names. The company also changed its name from ‘Ssangyong Information & Communications’ to ‘ITCEN NTEC’ in December of the same year to express its ambition to become a global company.

ITCEN NTEC announced yesterday that it recorded sales of 441.8 billion KRW, operating profit of 9.4 billion KRW, and net profit of 10.8 billion KRW last year. These represent increases of 12.6%, 12.2%, and 118% respectively compared to the previous year.

Researcher Lee Choong-heon of Valuefinder stated in the report on the same day, “The basis for the strong performance is the increase in sales due to the business boom of the company and its consolidated subsidiaries, and the improvement in profitability due to continuous growth and cost reduction activities of the company and its subsidiaries.” He added, “Although strong performances were recorded in 2022 (operating profit of 9.7 billion KRW, net profit of 12 billion KRW) and 2023 (operating profit of 8.4 billion KRW, net profit of 5 billion KRW), the market has not recognized the corporate value, and considering the current market capitalization of 43 billion KRW at a time when AI is highlighted, a value reassessment is necessary.”

He also said, “Recently, global interest in AI has been rising, and AI is one of the factors driving demand for cloud computing.” He analyzed, “The global cloud computing market size is expected to grow at an average annual rate of 18%, from 879 trillion KRW in 2024 to 2,938 trillion KRW in 2032.”

He added, “ITCEN NTEC currently provides total solutions necessary for cloud transition, including cloud-related consulting, equipment and system construction/operation/maintenance, so additional benefits are expected due to the high growth of the market.”