[Click eStock] "IDIS Secures New Growth Engines in AI, Overseas Expansion, New Business, and Policies"

On the 18th, SK Securities analyzed that IDIS is at the intersection of the massive global trend of artificial intelligence (AI), overseas expansion, new businesses, and government policies, forecasting an operating profit of 45.5 billion KRW for next year.

Heo Seon-jae, a researcher at SK Securities, stated in the report, "Through Costar Technology, a US video security company acquired last March, IDIS will be able to actively penetrate the US market, which is at least ten times larger than the domestic market," adding, "Costar is the 6th largest company in the market, securing major local clients such as Apple, Google, and MS."

He also mentioned, "From the third quarter, turnkey sales of smart parking solutions for large domestic construction companies are expected to occur," and "The domestic smart parking solution market size is estimated to be about 500 billion KRW, with the company targeting a market share of about 20%."

Additionally, the company is advancing a total solution business for 5G private networks. The 5G private network is a core infrastructure for building smart factories that integrate robots, AI, and XR, and IDIS is currently preparing pilot projects with major domestic conglomerates.

He analyzed, "IDIS's expected performance for this year is sales of 372.9 billion KRW and operating profit of 45.5 billion KRW, representing increases of 30.3% and 43.2% respectively compared to the previous year," attributing the growth factors to ▲ the full-scale commencement of smart parking solution sales ▲ the reflective benefits in the video security sector due to the global trend of excluding Chinese CCTV products ▲ the full-year reflection of consolidated results from Costar and Linkgenesis.

He continued, "Applying a simple average PER of 15 times from 2021 to 2022 to the expected performance for next year, the estimated market capitalization is about 600 billion KRW," and judged, "Furthermore, there remain multiple mid- to long-term performance and multiple improvement momentum such as ▲ normalization of Costar's performance and active participation in US public market bids next year ▲ leverage effects from capacity expansion of production in Vietnam, so it is important to maintain steady interest in IDIS."