[Click eStock] Hana Securities "Deepnoid, Performance Improvement Expected This Year"

"Security AI Solution as a 'Cash Cow'"

Hana Securities on the 18th issued a positive outlook on Deepnoid, expecting a turnaround in this year's performance due to increased sales of security artificial intelligence (AI) solutions.

Hanyugeon, a researcher at Hana Securities, said, "Deepnoid is expected to reduce its deficit through the expansion of overseas orders for security AI solutions, increased overseas sales, and revenue recognition from previously secured machine vision secondary battery and reading document/remote reading platforms." The expected performance for this year is sales of 20.5 billion KRW (an 89.1% increase from the previous year) and an operating loss of 2.55 billion KRW (reduced deficit). The researcher added, "Profitability improvement is also expected due to a decrease in the proportion of the high-cost machine vision sector and an increase in the medical AI sector."

In particular, the security AI solution business is expected to serve as a cash cow this year. Core products include X-ray inspection systems for airports and ports and inspection solutions for corporate security, with sales expansion expected through entry into overseas markets such as Thailand and Indonesia. The researcher analyzed, "The security AI solution has a track record of being supplied to Hyundai Motor Company and Samsung SDI, and a demonstration is currently underway targeting the Korea Customs Service. If the demonstration is completed within the year, a formal contract is expected to be signed."

Additionally, Deepnoid plans to launch the generative AI-based chest X-ray reading solution 'M4CXR,' which is expected to receive domestic approval in the second half of the year. It is anticipated to have more than twice the generative performance and a lower error rate compared to existing solutions, with supply expected to expand to domestic and international medical device manufacturers and medical image storage and transmission system (PACS) companies.

Deepnoid is an AI solution development company, with business sectors consisting of ▲ Industrial AI (vision inspection solutions) ▲ Medical AI (diagnosis and reading assistance) ▲ DX (customized AI education). As of the third quarter of last year, the sales composition was 94.3% Industrial AI, 4.0% DX, and 1.7% Medical AI.