[Click eStock] "MRO Wins Next-Generation System Development Project for Samsung Electronics"

Korea Investment & Securities evaluated that the mid- to long-term earnings growth visibility of Emro has increased as it secured a large-scale project on the 4th.

Yoon Cheol-hwan, a researcher at Korea Investment & Securities, explained, "Emro announced on the 31st of last month that it had secured a next-generation system development project worth a total of 49.4 billion KRW for Samsung Electronics," adding, "It is the largest contract since its establishment."

He continued, "The progress will be reflected in the earnings according to the progress rate until the project ends in the fourth quarter of next year," and added, "The visibility of mid- to long-term earnings growth has significantly increased." He also emphasized, "The contract size is larger than the market expected," and "The contribution to earnings within this year will be meaningful."

Researcher Yoon predicted, "Sales related to the next-generation project will be recognized incrementally according to the system opening and QA schedule," and "In addition to the large-scale order contract, there are abundant mid- to long-term growth drivers." He added, "The order backlog is steadily increasing," and "From the second half of this year, the effect of software version upgrades will begin to occur partially."

He analyzed, "Regarding the year-round integrated platform launch, costs such as hiring and training overseas sales personnel, delivery, and marketing expenses will occur," but "Based on the effect of the next-generation project, profitability will maintain the previous year's level and perform well."