[Click eStock] "Suprema, Continued Sales Growth in North America and Domestic Markets"

Yuanta Securities analyzed on the 8th that Suprema continues to experience sales growth in North America and domestically.

Suprema operates its integrated security system business and biometric recognition solution business primarily for export.

Kwon Myung-jun, a researcher at Yuanta Securities, stated in a report on the day, “The contract renewal for Qualcomm’s fingerprint recognition algorithm with improved ASP contributed to performance improvement in the first half of the year and is expected to have high scalability going forward,” adding, “There is potential for expanded application to foldable or mid-to-low-end products among domestic clients.”

Researcher Kwon also explained, “As part of the premiumization of Chinese smartphone companies, there is a possibility that Qualcomm’s ultrasonic algorithm will be applied,” and “There is also potential for entry into North American clients where changes in form factor are expected.”

He analyzed, “Sales growth targeting the public procurement market is expected in the second half of the year,” noting, “Suprema has competitiveness to the extent that it ranks first domestically (M/S 30%) just three years after entering the public procurement market, and due to the characteristics of the public procurement market, performance tends to be concentrated in the second half, especially in the fourth quarter.”

Additionally, it is expected that the establishment of North American fabs by domestic large corporations will contribute to performance growth. He forecasted, “The scope is expanding to SI solutions along with the main product, integrated security terminals,” and “It is anticipated that not only large corporations (automotive/secondary battery/semiconductor) but also component suppliers will continue to establish North American fabs, and benefits from this are expected.” He added, “Based on references, entry into local North American companies is also anticipated.”

He also analyzed that the new product released on the 2nd will be a factor in performance growth. He said, “Although the new product W3 is a facial recognition product, it features a design without a display,” adding, “It can secure price competitiveness through size reduction, improve accuracy through AI and deep learning, and has a fast recognition speed (0.2 seconds), which will strengthen competitiveness by expanding the lineup of facial recognition products.”