[Click eStock] "Samsung SDS, Expectations for Generative AI Achievements"

Hana Securities forecasted on the 26th that Samsung SDS will begin generating significant revenue from generative artificial intelligence (AI) starting in the second half of this year.

Samsung SDS recorded sales of 3.369 trillion KRW and operating profit of 220.9 billion KRW in the second quarter of this year. These figures represent increases of 2.4% and 7.1% respectively compared to last year.

Lee Junho, a researcher at Hana Securities, explained, "The results met market expectations," adding, "The second-quarter performance was driven by cloud services." He further stated, "Sales in the IT services division reached 1.5864 trillion KRW, a 5.0% increase compared to the same period last year."

He continued, "CSP sales grew by 48.7% year-on-year, leading to higher profit margins," and added, "The rapid growth in CSP sales is continuing due to increased GPU services for generative AI."

The researcher noted, "Since May, starting with KB Financial Group, Samsung SDS has been building references for enterprise generative AI services," and predicted, "This will lead to increased MSP sales from the third quarter onward."

Samsung SDS is estimated to achieve annual sales of 13.5862 trillion KRW and operating profit of 930.8 billion KRW this year, representing increases of 2.3% and 15.2% respectively compared to last year.

Lee added, "Although the contribution of the enterprise generative AI services Fabrics and Brity Copilot, launched in May this year, to the first half results was low, we expect full-scale monetization starting in the second half," and analyzed, "Samsung SDS is the first to enter the domestic enterprise generative AI service market and is already showing results."