South Korea’s Douzone Bizon Co., the country’s sole enterprise resource planning (ERP) solution provider, has emerged as a hot stock, attracting investors on its strong earnings, high dividend payouts and dominant market presence.

According to Korea Exchange and data provider FnGuide on Tuesday, the Kospi-listed Douzone Bizon’s market capitalization reached 971.8 billion won ($861.4 million) as of Monday as its stock price surged 56.6 percent this year. It has already drawn a net 100 billion won from foreign investors so far this year.

The company’s stellar stock performance is mainly driven by its steady earnings flow. Market analysts projected its operating profit of 20.5 billion won in 2014 to more than double to 46.5 billion won this year. Douzone Bizon is currently the dominant local provider of accounting programs and ERP management software as well as electronic tax invoices and e-banking.

The firm recently added cloud services to its business portfolio, a move that is expected to further lift its business prospects. Cloud computing refers to a service where data is stored on servers connected to the internet, allowing users to access the information from any online device. In 2011, the company built a large cloud center in Chuncheon, Gangwon Province to support its cloud-based ERP services.

Investors hold a rosy outlook on Douzone Bizon, citing its similarity in business strategy with Amazon, the e-commerce giant that also runs the world’s biggest cloud computing business. As the cloud services of both Amazon and Douzone Bizon are subscriber based, they can maintain long-term existing clients while adding new members, a main driver for the uninterrupted growth in their sales, said Jang Woo-jin, analyst at KB Securities Co.

Amazon Web Services, the tech giant’s cloud computing arm, has seen rapid growth since 2014. Douzone Bizon, thanks to its new cloud computing business on top of its leading position in the local corporate accounting and ERP solution market, is expected to post 200 billion won in revenue for the first time this year, a twofold increase in five years.

As of 1:49 p.m., shares of Douzone Bizon were 0.62 percent lower at 32,250 won.

By Moon Il-ho

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