[Click eStock] "Solumiem, Beginning of Full-Scale ESL Global Distribution"

Maintaining the Target at 42,000 Won

On the 28th, IBK Investment & Securities stated, "SoluM's performance is expected to rapidly improve, driven by the global expansion of its flagship product, the Electronic Shelf Label (ESL)," and added, "We maintain our investment rating at 'Buy' and the target price at 42,000 KRW."

In a report on SoluM, analyst Geonjae Lee of IBK Investment & Securities evaluated, "The expansion of ESL sales significantly contributed to the performance improvement last year." SoluM recorded sales of 1.9511 trillion KRW last year, a 15% increase compared to 2022 sales. Operating profit during the same period rose by 105% to 154.5 billion KRW.

The analyst forecasted, "The global penetration rate of ESL is less than 10%," and added, "Starting with Europe, the adoption rate is expanding, leading to sustained stable growth." He also noted, "Although the adoption rate in North America and Asia is lower than in Europe, recent high wage growth in these regions is driving the spread of ESL implementation to offset labor costs."

He further explained, "In high-wage regions such as Europe and North America, ESL is no longer limited to simple price display functions but is actively incorporating additional features such as 'online-offline price linkage' and inventory management functions utilizing artificial intelligence (AI)," and predicted, "The addition of these features could increase sales growth rates."