[Featured Stock] Yuracle Rises 15% on Partnership Expectations with LG AI Research Institute

Uracle has been on the rise for two consecutive days. The expectation of an artificial intelligence (AI) business partnership with LG AI Research is interpreted as driving the stock price up.

As of 9:06 a.m. on the 26th, Uracle is trading at 13,350 KRW, up 14.59% (1,700 KRW) from the previous trading day. Following a roughly 15% surge the day before, strong buying momentum continued on this day as well.

Earlier, securities analysts stirred investor sentiment by suggesting that the AI business agreement Uracle signed with LG AI Research on the 25th could quickly contribute to the company's performance improvement. According to the agreed terms, LG AI Research’s self-developed large language model (LLM) 'EXAONE' will be supplied to enterprises, and Uracle’s AI platform 'Athena' will be utilized for optimization and operational automation, chatbots, and system-linked data platforms.

Kim Hak-jun, a researcher at Kiwoom Securities, said, "We have secured performance cases through the Ministry of the Interior and Safety’s Safety Report research project, and currently, proof of concept (POC) is underway at 10 institutions including three government agencies, four financial institutions, and two general companies." He added, "Visible results are expected by June to July, and performance expansion through the AI platform will be in full swing in the second half of the year." The EXAONE-Athena AI platform’s construction costs are recorded as sales, and thereafter, maintenance sales occur annually at about 10-15% of license sales.

Researcher Kim said, "Although costs such as AI and cloud investment and company relocation expenses are increasing, profit margins will improve when projects currently undergoing AI service POCs convert into orders." He projected Uracle’s consolidated sales for this year at 53.3 billion KRW (up 12.0% year-on-year) and operating profit at 5.1 billion KRW (up 159.4% year-on-year).