[Click eStock] "Synapsoft to Launch LLM-Based AI Solution... High Profitability to Continue"

Hana Securities analyzed on the 9th that Synapsoft is expected to maintain high profitability due to the launch of large language models (LLM). No investment opinion or target price was provided.

Synapsoft, established in 2000, is a company that owns a digital document software platform. Over a period of 25 years, it boasts numerous references, having secured more than 7,000 client companies.

Seongho Kim, a researcher at Hana Securities, stated, "Synapsoft's strength in artificial intelligence (AI) software lies in its existing business know-how, including OCR recognition rate (TTA certified document recognition rate of 99.3%) and document creation and viewer functions." He added, "Two products utilizing this are expected to be launched using LLM application methods and data preprocessing methods."

He said, "Both products are judged to have growth momentum," and added, "The launch momentum of Synap DULLM, which utilizes LLM, in the electronic disclosure in December is anticipated." He explained, "Synap DULLM is a product that uses LLaMA, an open-source LLM from Meta in the U.S., learning digital documents to provide functions such as extractive question answering."

He continued, "The solution using electronic disclosure DART, scheduled for release in December, is a product that has been prepared for over a year and is expected to offer various functions."

He emphasized, "Synap DocuAnalyzer is a product capable of analyzing and learning all document formats (HWP, Word, PDF, Excel, etc.)," and added, "It is software responsible for the data preprocessing process and is a solution expected to expand its usage."

Hana Securities forecasted that Synapsoft's sales and operating profit this year would be 13.1 billion KRW and 5.2 billion KRW, respectively, and that next year they would reach 15 billion KRW and 6.6 billion KRW. He explained, "Although operating profit margin slightly decreased due to proactive investment for advancing digital document utilization solutions such as generative AI technology application, profit margins are expected to normalize from next year due to cost stabilization."