[Click eStock] "MRO, Continued Performance Improvement This Year"

Hana Securities forecasted on the 13th that Emro, a supply chain management software company, will see both revenue growth and improved profitability this year.

Kim Seong-ho, a researcher at Hana Securities, stated, "We estimate that Emro will achieve sales of 96.4 billion KRW and an operating profit of 14.1 billion KRW this year," adding, "This represents an increase of 19.3% and 37.1%, respectively, compared to last year."

He continued, "Since last year, demand for purchasing solutions in the upstream market has been increasing," and added, "Even excluding overseas order performance such as next-generation purchasing system projects for global companies, growth is expected."

He analyzed, "For projects underway with global companies, maintenance-related technology fee revenue continues to be generated even after project completion," and "We expect an increase in annual technology fee revenue."

Additionally, he explained, "The global supply chain management (SRM) SaaS solution Cadencia signed its first contract last October," and noted, "It is understood that only part of Emro's purchasing function model was contracted." He emphasized, "There is also potential for additional order expansion," and "Since all overseas contracts are conducted via cloud, we anticipate an increase in the proportion of cloud sales."

He assessed, "While costs related to hiring personnel for overseas business and SaaS advancement may continue to occur," he judged, "The possibility of operating profit decline is limited due to the effects of large projects and the expansion of cloud sales proportion."