[Click eStock] "Emro, Level-Up Phase Following Overseas Market Expansion"

Hana Securities analyzed on the 18th that Emro is at a level-up stage due to its full-scale entry into overseas markets.

Emro, established in 2000, is an AI-based supply chain management (SCM) software specialist company, holding the No. 1 market share in the domestic SCM market. Emro has more than 540 customers across most business sectors, including Samsung, LG, and SK. Last year, it recorded sales of 63.2 billion KRW and an operating profit of 4.7 billion KRW.

Kim Seong-ho, a researcher at Hana Securities, stated in a report on the same day, “Emro is developing an ‘Integrated Supply Chain Management SaaS Platform’ together with Samsung SDS and Onine Solutions, with the launch imminent. This solution is the world’s first product integrating SCP, SRM, and SCE, and based on the Onine Solutions single platform, it plans to actively expand into overseas markets, with related performance expected in the 2nd to 3rd quarter.”

In particular, the overseas SCM market is more than 40 times larger than the domestic market and offers price advantages, leading to expectations for Emro’s future scale expansion. At CES 2024, Emro attended with Samsung SDS and demonstrated ‘SRM SaaS,’ which automates the existing proposal/quotation and contract processes through purchase automation (Auto-PO), reducing purchasing costs by about 20%, suggesting high demand from customers after launch.

He emphasized, “Through the continuous increase in the proportion of technology-based sales, including licenses, technical support, and cloud usage fees, monthly usage fees and recurring revenue generation will be possible,” adding, “Attention should be paid to the momentum of overseas sales growth.”

He further analyzed, “While it is necessary to observe whether domestic customers’ IT investments recover, the direction toward AI-based SCM transition is clear. Also, sales related to the SRM SaaS integrated platform scheduled for release this year are expected, and depending on the product penetration speed after launch, performance upgrades are possible.”