Tomato System is showing strong performance. Securities firms' analysis that the company is increasing its profit margins by utilizing artificial intelligence (AI) technology appears to be influencing its stock price. The company is also expanding into new businesses such as remote medical services and e-commerce platforms beyond UI, as well as security solution expansion, which is expected to accelerate its growth rate.
As of 9:44 AM on the 13th, Tomato System was trading at 5,330 KRW, up 510 KRW (10.58%) compared to the previous trading day.
Tomato System is offering differentiated services in the SI market by leveraging AI technology. It possesses a web solution capable of simultaneously implementing PC and mobile UI, receiving high evaluations for its technological capabilities.
Kim Hak-jun, a researcher at Kiwoom Securities, explained, "By applying and optimizing AI in solutions, the number of personnel required per project is reduced," adding, "The overall poor performance of SI companies is due to a fixed number of personnel per project and rising labor costs, which have lowered profit margins."
He continued, "Tomato System has completed data analysis AI application and automation solutions, reducing the personnel needed for customization and construction by up to 33% compared to other companies," and added, "The project-level GPM is formed at a high rate of 40-60%."
Furthermore, he analyzed, "The new service eXTest can significantly shorten developers' testing periods," and "Additional growth of related solutions is expected." He emphasized, "Scalability and profitability are expected to be maximized after 2025," and "A beta version of the 'automatic construction - DB modeling - development coding test automation' solution using ChatGPT and the proprietary coding DB will be developed by the end of this year." Researcher Kim stated, "It can maximize the efficiency of client developers from A to Z and achieve cost reduction," and explained, "About 10% of solution sales accumulate annually as licenses."
Sales for next year are estimated to reach 40 billion KRW, with an operating profit of 10.5 billion KRW. It was judged to be in an undervalued range.
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