EUGENE INVESTMENT & SECURITIES said on the 11th that sales growth at DOUZONE BIZON CO. is expected to continue, led by new solutions such as WEHAGO and Amaranth10. It maintained a Buy rating and raised its target price by 31.46% to 117,000 won. The previous session's closing price of DOUZONE BIZON CO. was 85,000 won.
Researcher Park Jong-seon at EUGENE INVESTMENT & SECURITIES said, "DOUZONE BIZON CO.'s third-quarter sales marked a record high for the 11th consecutive quarter from the same period a year earlier," and noted, "DOUZONE BIZON CO. is continuing its sales growth centered on new solutions."
On a consolidation basis, DOUZONE BIZON CO.'s third-quarter sales this year were 114.7 billion won, with operating profit of 35.8 billion won. These figures rose 18.2% and 73.4%, respectively, from a year earlier.
By segment, the Lite ERP business rose 16.3% from a year earlier, driven by sales growth of the new WEHAGO solution. Park said, "Under the end-of-support policy, sales of the on-premise SmartA product fell 51.9% from a year earlier, but sales of the WEHAGO solutions, including SmartA Cloud, increased 25.7%, propelling overall sales growth."
The Standard ERP business increased 49.4% from a year earlier. As Amaranth product sales drew in new customers, they rose 117.5% year over year, driving growth. In contrast, iCUBE customers decreased from 9,460 in the second quarter to 8,931 in the third quarter.
In contrast, the Extended ERP division fell 15.5% from a year earlier. Park analyzed, "While sales of the existing iU product declined 12.6%, sales of the new OmniEsol solution also decreased 16.5% year over year."
Park added, "Along with sales growth, profitability is steadily improving as outsourcing costs are reduced through the use of generative artificial intelligence (AI), which is also positive." Park emphasized, "DOUZONE BIZON CO. achieved its highest operating profit margin (OPM) in 23 quarters since the fourth quarter of 2019."
Park expected the sales growth trend to continue in the fourth quarter. Park said, "New solutions such as WEHAGO, Amaranth10, and OmniEsol will not only lead sales in each business and drive overall sales growth, but also contribute to profitability improvements, allowing the company to maintain high profitability."