[Special Stock] Suprema, a Global Company Growing Double Digits Annually

Suprema is showing strong performance. It appears that securities firms' analysis expecting double-digit annual growth has influenced this trend.

As of 9:59 AM on the 3rd, Suprema was trading at 25,750 KRW, up 1,550 KRW (6.40%) compared to the previous trading day.

Shinhan Investment Corp. expects Suprema's integrated security system sales to have a compound annual growth rate (CAGR) of 14% from 2018 to 2023, with an anticipated annual growth of around 15% for the coming years.

Researcher Choi Seunghwan of Shinhan Investment Corp. stated, "Suprema is the number one company in the European and Middle Eastern markets and a top-tier company chosen by North American big tech firms, data centers, and Japan's LY." He explained, "Demand for surveillance systems across security, industry, and residential sectors is accelerating, and as the leading operator, differentiated growth is expected."

He added, "The physical access control system based on biometric recognition such as facial and fingerprint recognition (segment name: integrated security system) is Suprema's core business, accounting for 77% of its sales." He analyzed, "This market is rapidly growing across both private and public sectors, and following the pandemic, the increase in cyberattacks and phishing threats has accelerated demand for strong user authentication systems."

He further explained, "The access control market is closely related to industrialization, urbanization, and digitalization, with advanced markets such as North America, Europe, and Japan leading the way." He described Suprema as "a world-class company that has secured numerous government and large enterprise clients in advanced markets under its own brand."

Shinhan Investment Corp. forecasts Suprema's sales and operating profit this year to be 107.1 billion KRW and 22.9 billion KRW, respectively, representing increases of 13.2% and 37.7% compared to the previous year. He emphasized, "The current KRW-USD exchange rate is 6% higher than last year's average. Suprema holds most of its overseas earnings in dollars, so the rising exchange rate is advantageous for both operating and non-operating income."