[Click eStock] S1, Record Quarterly Sales "Stable Growth Expected This Year"

[Asia Economy Reporter Lee Seon-ae] Heungkuk Securities announced on the 1st that it maintains a buy rating and a target price of 90,000 KRW for S1. This is because the company succeeded in achieving an operating profit in the 200 billion KRW range again in 2022 and is expected to demonstrate stable profit generation this year based on steady sales growth.

S1's fourth-quarter sales amounted to 630.2 billion KRW, a 5.8% increase compared to the previous year. Operating profit surged by 224.4% to 37.6 billion KRW. The overall strong business performance across all sectors drove growth, recording the highest quarterly sales ever.

Hwang Seong-jin, a researcher at Heungkuk Securities, stated, "While the growth trend in the subscriber-based system security sector continues, strengthening sales activities focused on strategic areas such as remodeling and reconstruction complexes is expected to yield results." He added, "Additionally, in the building management sector, effects from enhanced retention and expanded coverage are appearing, and various efforts to expand the sales base targeting external customers are anticipated."

The dividend per share (DPS) for 2022 was set at 2,500 KRW. The dividend payout ratio is approximately 65.5%, and the dividend yield is about 3.3%. Researcher Hwang emphasized, "Despite uncertain external economic conditions, the company possesses a stable business structure based on steady demand, which means it exhibits somewhat slow but very steady and stable growth. This is a key advantage." He also noted, "In the mid to long term, the company will seek various growth opportunities through overseas expansion, information security business growth, strengthening retention of affiliates, and expanding coverage."