[Click eStock] "RaonSecure Expected to Benefit from Domestic and International Digital ID Orders"

On the 11th, Eugene Investment & Securities analyzed that RaonSecure is expected to benefit from domestic and international digital ID orders.

Park Jong-sun, a researcher at Eugene Investment & Securities, stated in a report on the same day, "RaonSecure achieved a record high consolidated sales of 52.1 billion KRW last year," adding, "This was driven by sales growth of key products such as OneGuard, TouchNWise Access, and TouchN M Vaccine."

However, operating profit turned to a loss due to ▲ changes in revenue recognition accounting standards resulting in some sales and gross profit being deferred to this year ▲ increased costs such as labor expenses due to expansion of research and development personnel for new business growth ▲ increased selling and administrative expenses caused by subsidiary merger costs and temporary expenses related to the relocation of the head office building.

Researcher Park said, "In the first quarter of this year, consolidated sales are expected to reach 10.9 billion KRW and operating profit 400 million KRW, representing a 21.2% increase and a return to profitability compared to the same period last year," and added, "This year, not only will the blockchain-based digital ID issuance business be fully launched, but also the government’s mobile resident registration card construction project is expected to be ordered, and orders for Indonesia’s national digital ID construction are anticipated, leading to record-high sales and significant profitability improvement."

He continued, "Currently, the stock price is trading at a 2024 estimated price-to-earnings ratio (PER) of 13.4 times according to our estimates, which is discounted compared to the domestic peer average PER of 41.3 times."