[Click eStock] “Suprema, Expected Impact of New Product Launch in 2025”

Yuanta Securities analyzed on the 14th that Suprema is expected to benefit from the launch of new products next year.

Suprema provisionally announced that its sales and operating profit for the third quarter of this year were 25.1 billion KRW and 5.7 billion KRW, respectively, marking increases of 19.3% and 60.2% compared to the same period last year. The expansion of high average selling price (ASP) facial recognition products and the effect of Qualcomm contract renewal continued, and the increase in sales of integrated security terminals combined with SI solutions targeting domestic companies entering the U.S. market were analyzed as major factors.

Performance growth is also expected in the fourth quarter. Researcher Kwon Myung-jun of Yuanta Securities stated in a report on the same day, “Suprema rose to first place in the public procurement market within three years of entry, with B2G orders and revenue recognition concentrated in the fourth quarter every year,” adding, “Also, with an export ratio of over 80%, sales and profit margins are expected to improve due to the KRW/USD exchange rate effect.”

There are also many factors that encourage growth expectations for 2025.

Researcher Kwon said, “First, sales related to the new products launched last October will begin in earnest. After the launch of new products, there has been a tendency for products to be sold in earnest from 2 to 4 quarters later. This is expected to contribute to the company’s performance improvement from the second half of 2025.”

He continued, “Second, sales growth related to bio-recognition solutions is also expected. As cybersecurity issues continue to expand, the application of the company’s solutions with high security levels within smart devices is expected to expand not only domestically but also globally, including China.”

Furthermore, he analyzed, “Third, sales growth in new markets (Middle East/Africa) is expected to expand. Various projects are underway in the Middle East, including Saudi Vision 2030, and interest in security is increasing in Africa as well. Early market entry and reference building will act as driving forces for long-term performance growth.”

Finally, he added, “The trend of expanding the proportion of facial recognition products with high ASP is also expected to contribute to performance improvement.”