SK Securities analyzed on the 10th that Deepnoid's potential as a multi-bagger is increasing with its dual pillars of medical and industrial artificial intelligence (AI). No investment opinion or target price was provided.
Deepnoid was established in 2008. It is an AI solution development and sales company listed on KOSDAQ since August 2021. Its AI imaging diagnostic solution for cerebral aneurysms, DEEP:NEURO, which was the first of its kind developed domestically, was selected as an innovative medical device last August, marking its full-scale entry into the non-reimbursed market.
SK Securities forecasted that Deepnoid's AI imaging diagnostic solution for cerebral aneurysms will become an essential element. Lee Dong-geon, a researcher at SK Securities, said, "As of 2022, there are approximately 1.17 million cerebral aneurysm patients in Korea, confirming a high demand for brain MRA (magnetic resonance angiography) examinations," adding, "Cerebral aneurysms can only be screened through MRA, which examines cerebral blood vessels, and the number of examinations has been continuously increasing due to expanded insurance coverage since 2018."
He continued, "Deepnoid's AI solution, with a high sensitivity of 91% and a reduction of over 60 minutes in reading time compared to specialists, is expected to emerge as an essential auxiliary solution for cerebral aneurysm diagnosis, where prognosis significantly varies depending on the reduction of examination time."
Regarding industrial AI solutions, supply for secondary batteries is expected. Deepnoid's AI solution for factory automation, DEEP:FACTORY, is an AI-based machine vision solution that fully automates defect quality inspections previously conducted visually. It has secured contracts with numerous government agencies and companies to date. He said, "In 2023, the results of secondary battery process introduction are also expected to become visible," adding, "It is understood that commercialization of secondary battery machine vision AI solutions is imminent through collaboration with global companies."
He emphasized, "As the global machine vision market is expected to grow rapidly to a scale of 18 trillion KRW by 2030, the commercialization results of machine vision AI solutions in the secondary battery market are expected to quickly translate into direct performance contributions."
SK Securities expects Deepnoid to show full-fledged growth starting with a performance turnaround next year. He said, "Along with continuous government project sales, sales growth based on the commercialization of secondary battery machine vision AI solutions, a new market entry area in addition to existing orders in industrial AI, is expected," adding, "Considering the additional sales contribution from the medical AI solution DEEP:NEURO, sales in 2024 are expected to reach about 20 billion KRW, with operating profit around 7 billion KRW, marking a clear performance turnaround."
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