With South Korea’s large presence in the entertainment industry, this sector is probably the first thing that comes to mind to investors when it comes to buying stocks in the East Asian country.
However, if an investor had their sights set on Korea’s two stock exchanges, Korea Exchange (KRX) and the KOSDAQ, companies providing mobile phone certification management services would most probably not be on anyone’s mind as long as the major Korean multinationals such as Samsung, Kia and LG are around.
This is one of the reasons why InvestAsian believes that INFOvine Co., Ltd. (KOSDAQ:115310) should be brought to your attention.
What are Mobile Phone Certification Management Services
In this information technology age, much of the hype revolves around the end product or services themselves that makes life more convenient, with the lion’s share of the conversation devoted to big-name service providers. A good example of one of the most prominent is Paypal.
Hidden in the background are the hefty numbers of service providers that work together to make such demanded services possible. With PCs and mobile phones playing an essential role in our daily lives, it would not hurt to learn more about a company that is playing a major part behind the scenes, especially not when there are potential gains to be realized.
Boasting the highest profit margin in the industry, INFOvine is one of the fastest growing companies engaged in the provision of this type of service.
Investing in INFOvine Stock
A relatively young company established in the year 2000, INFOvine is one of the fastest growing companies in what is known as the computer integrated systems design sector, nearly doubling its sales in the last 5 years alone.
A South Korean company engaged in the provision of services, INFOvine develops mobile certificate management solutions as well as electronic payment solutions that are used in phones as well as personal computers.
Their services are used in many prominent local and international websites that require electronic payments such as those involved in online shopping and the online gaming industry, which is one of Korea’s biggest.
Robust, Continuous Growth
InvestAsian believes that INFOvine stock is a strong buy at this moment because of the following reasons.
First of all, sales have been extremely strong relative to the amount of assets invested and has been increasing for the past 5 years to nearly twice what it was. Being one of the smaller and more versatile companies on the market, INFOvine boasts an ROA of 16.61%, the highest in the industry.
The company’s fundamentals are also strong with a current ratio of 4.42, showing signs that there is no problem meeting their current obligations.
The most important aspect however, is the return shareholders have received on INFOvine stock. Despite the relatively small size of the company, the shareholders have been in for a treat all stemming from the highest profit margin in the industry, more than 4x its closest competitor.
This is not an isolated incident unique to the current year as analysis of the previous years show an upward trend in net income, ROA, ROI and most importantly, the share price.
Due to the current global economic position, the shares have gone down by about a quarter of its original value 5 months ago and with the company’s strong performance and fundamentals, there is no reason why it should not rise back up again
For foreign investors who want to buy INFOvine stock, you would have to set up a trading account through a securities company or asset management firm such as Samsung Securities or Mirae Asset. Some brokerages outside of Korea also allow you to trade on the Korean stock exchange.