Stock Price Surges 71% This Month
Operating Profit Jumps 772% in Q1
Stable Coin Business Expectations Reflected in Share Price
IT system integration (SI) company ITCen Global has seen its stock price surge significantly this month. As interest in stable coins grows, expectations for ITCen Global's business growth are also rising. The sharp increase in operating profit in the first quarter of this year has also contributed to the company's rising valuation.
According to the financial investment industry on May 27, ITCen Global's stock price has risen by 70.6% so far this month. During the same period, the KOSDAQ index increased by only 1.1%.
ITCen combines its expertise in system integration and operations with advanced technologies such as cloud, artificial intelligence (AI), and security to support clients' digital transformation (DX). The company provides customized IT solutions and services to clients in various industries, including the public sector, finance, and manufacturing, thereby helping to strengthen their competitiveness. ITCen is also offering innovative services utilizing blockchain technology. It operates gold fractional investment and peer-to-peer physical asset trading platforms. The company is strengthening its Web3 business, focusing on physical asset platforms 'CenGold' and 'GeumbangGeumbang.' As of the end of last year, CenGold's cumulative transaction volume surpassed 1 trillion won, and its membership exceeded 1.18 million users. GeumbangGeumbang also saw its transaction volume in the first quarter of this year increase by 135% compared to the previous quarter.
The growth of Web3 business divisions such as Korea Gold Exchange and Korea Gold Exchange Digital Asset, as well as balanced improvements in affiliate companies' performances, led to a 'surprise' result in the first quarter. On a consolidated basis, ITCen Global recorded sales of 1.6366 trillion won and operating profit of 33.8 billion won in the first quarter. Compared to the same period last year, sales increased by 80%, and operating profit surged by 772%. On a separate basis, sales reached 21 billion won, marking a 200% increase year-on-year. Operating profit and net profit turned positive, reaching 2.2 billion won and 1.9 billion won, respectively.
Lim Sangkuk, a researcher at KB Securities, stated, "ITCen Global operates a physical gold trading platform business through Korea Gold Exchange, in which it holds a 67.3% stake," adding, "With the surge in gold prices, gold trading volume increased from 7.2 tons in the first quarter of last year to about 9.3 tons in the first quarter of this year." He further explained, "Global geopolitical risks, growing economic uncertainty, a weakening dollar, and expectations of interest rate cuts are all contributing to increased interest in gold."
Expectations for the stable coin business are also growing. Stable coins refer to 'cryptocurrencies with stable value.' Stable coins are digital assets whose value is pegged to fiat currencies such as the dollar or euro, or to assets like gold or other cryptocurrencies, resulting in low price volatility. With the added speed and convenience enabled by blockchain technology, demand for stable coins is rapidly increasing. There is also a growing call domestically for the swift introduction of stable coins.
ITCen Global holds a 51% stake in Credder, a developer of gold-based blockchain financial platforms. The company is expected to prepare for a stable coin issuance business based on currency linkage. Based on its experience in digital trading platform businesses for physical metals, ITCen Global is expected to take a leading position in the stable coin market. The company's valuation could also be reassessed if relevant laws are enacted and regulations are eased.
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