[Click eStock] "Suprema Achieves Record-Breaking Performance Last Year... Growth Expected This Year as Well"

Yuanta Securities forecasted on the 27th that Suprema recorded its highest-ever performance last year and will continue to grow this year. No investment opinion or target price was provided.

Suprema posted sales of 108.2 billion KRW and an operating profit of 23.29 billion KRW last year, marking increases of 14.4% and 39.8% respectively compared to the previous year. Myungjun Kwon, a researcher at Yuanta Securities, explained, "Except for 2020, when performance declined due to COVID-19, sales growth has continued," adding, "The profit improvement from 2020 to 2024 is greater than the sales growth." He further noted, "Based on the closing price as of the previous day, the current price-to-earnings ratio (PER) below 6.5 times indicates an undervalued phase."

Yuanta Securities expects Suprema to continue its performance growth this year. Researcher Kwon stated, "Following last year, the integrated security system is expected to maintain its growth trend this year," and added, "In the U.S., sales of integrated security systems have expanded due to domestic companies establishing factories there; this is considered an early stage, and sales channels are expected to expand to affiliates and parts companies."

He continued, "In the Middle East, sales growth driven by infrastructure construction expansion in Middle Eastern countries was observed last year and is expected to continue this year," explaining, "Due to issues such as U.S.-China relations, domestic and foreign companies are relocating factories to India, and related government and local government infrastructure investments are underway."

Through contract renewal with Qualcomm, the bio-recognition division also showed significant growth last year and is expected to continue growing this year. He emphasized, "Sales of new products from client companies supplied through Qualcomm are expected to improve compared to the previous year," and added, "Suprema’s ultrasonic fingerprint recognition algorithm, as part of Chinese companies’ smartphone premiumization strategies, can also enter the Chinese market via Qualcomm, which is a positive factor."