Virtual golf operator Golfzon stock soars over 80% on latest golf fever

South Korea’s top golf simulation system provider Golfzon stock has surged over 80 percent on golf boom from the virus momentum and is set to go even higher amid easing in social distancing rule.

The Kosdaq-listed Golfzon finished Monday up 6.96 percent at 135,200 won ($119.61), nearing its peak of 160,000 won set in 2015.

The stock ascension has been driven by age-wide golf boom amid little pastime and restrained international travel during virus-risk environment.

According to data from NH Investment & Securities, the number of golf players in Korea reached 6.37 million as of 2020, expanding 17 percent against a year ago. The growth rate is well above the average of 11 percent on-year growth over the past nine years.

The sport traditionally dominated by men in their 40s and older has become popular among 20s and 30s who took up the sport as an alternative to traveling.

Golfzon is projected to finish the second quarter with an operating income of 26.4 billion won, up 87 percent on year, on 36 percent gain in sales of 98 billion won, according to estimates from market tracker FnGuide.

The virtual golf operator is expected to further benefit as the current 10 p.m. curfew will be pushed back to midnight starting July 5.

Its overseas sales in Japan, the U.S. and Vietnam are also forecast to reach 36 billion won this year, doubled from 14.9 billion won in 2018.

SK Securities raised the company’s target share price to 160,000 won apiece in June, from 100,000 won in March. The average target price provided by local securities companies stands at 149,500 won.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]