[Click eStock] "Suprema, Expanding Sales to Neom City... Expecting Strong Performance This Year"

NH Investment & Securities analyzed on the 14th that Suprema's sales for the smart city project Neom City are expected to increase. No investment opinion or target price was provided.

Suprema recorded sales of 30.2 billion KRW and operating profit of 8.7 billion KRW in the fourth quarter of last year, representing increases of 18.4% and 39.1% respectively compared to the same period the previous year. Baek Joon-gi, a researcher at NH Investment & Securities, said, "The fourth quarter benefited from the peak season effect as well as the reflection of deferred sales from the first half of the year," adding, "We believe that the base effect along with performance expectations will be reflected in the stock price in the first half of 2024."

NH Investment & Securities forecasted that Suprema will record sales of 110.2 billion KRW and operating profit of 20.4 billion KRW this year, representing increases of 16.5% and 22.4% respectively compared to the previous year. He emphasized, "The steep profit growth trend that began in the second half of last year is expected to continue," and "The high-margin smartphone fingerprint recognition solution is expected to contribute more to profits starting from the second quarter of this year due to contract renewals with clients."

He explained, "Sales expansion based on data is expected in the future," and "We view positively the current situation where Suprema is securing related order references as sales to Neom City, the world's largest smart city project, increase."

He also expected sales from AI-equipped products to increase. He said, "On-device based AI solutions use a separate core inside the device rather than the cloud, providing a high level of security," and "Suprema AI, a subsidiary, is expected to add order references this year by utilizing video analysis for robots, elevators, CCTV, and more."