[Click eStock] "Softcamp, Security Service Sales Expansion Expected"

KB Securities Report

[Asia Economy Reporter Minji Lee] KB Securities forecasted on the 13th that Softcamp's cloud security service sales could expand due to increasing demand for security services.

Softcamp is an information security solution company specializing in document security. It provides an integrated security platform for corporate information protection. The company's sales in the second quarter amounted to 4 billion KRW, a 5.6% decrease compared to the same period last year. Operating loss continued at 400 million KRW. Net profit recorded a surplus of 600 million KRW due to increased financial income.

By product sales proportion, maintenance accounted for 43.9%, data leakage prevention 45.5%, system security management 8.5%, and APT response 2%.

As more companies adopt cloud environments, demand for security services covering data usage and collaboration, external threat security, and work environment security is increasing. Softcamp launched Security 365, an integrated security cloud brand, providing solutions compatible with Microsoft 365 and Teams. In August, it signed a reseller agreement with S-Pin Technology, which supplies cloud managed services, Microsoft 365, Azure Cloud, and other services to over 5,000 domestic clients. Regarding this, KB Securities researcher Kyung Eun Lee evaluated it as “a strategy to expand Softcamp's cloud security service sales.”

To increase stock prices, profit margin improvement is necessary, requiring scale expansion sufficient to offset fixed costs. Researcher Kyung Eun Lee stated, “The software industry develops and sells intangible assets, so variable cost burden is low, but the proportion of fixed costs such as development expenses is high,” adding, “Wages for development personnel are continuously rising, leading to an increasing labor cost burden.”