[Click eStock] "SureSoftTech, Expected Growth in Automotive Software Sector"

Research Alom analyzed on the 30th that SureSoftTech is likely to improve its performance in the future, considering its business structure specialized in the automotive software (S/W) sector.

Researcher Seunghwan Lee from Research Alom explained, "The transition to the SDV (Software Defined Vehicle) system, which is becoming increasingly important in the finished car market, is closely related to SureSoftTech's S/W testing and verification business."

He continued, "They have accumulated knowledge and experience in automotive controller testing and verification by conducting automotive controller testing projects," adding, "As their understanding of the automotive S/W development process deepened, they developed testing and verification solutions specialized for automotive S/W."

Furthermore, he emphasized, "SureSoftTech has recently grown into a comprehensive automotive S/W engineering partner by directly developing S/W for some controllers of next-generation vehicles."

He analyzed, "The U.S. government has decided to gradually ban the sale of vehicles using Chinese or Russian S/W or parts for autonomous driving or communication functions," adding, "If Korean companies selling cars to the U.S. use banned S/W or parts, supply chain adjustments will be inevitable."

Researcher Lee explained, "The U.S. Department of Commerce announced a regulatory proposal banning the import and sale of vehicles equipped with certain hardware or S/W linked to China or Russia in vehicle connectivity systems (VCS) or autonomous driving systems (ADS)."

It is estimated that next year, sales will reach 142.8 billion KRW and operating profit 21.8 billion KRW. Sales are expected to increase by 52.2% compared to this year, with operating profit turning positive.