[Click eStock] "Ginians, Increasing Importance of Cybersecurity Market in the AI Era"

Independent research firm ValueFinder analyzed on the 2nd that the importance of the cybersecurity market will become more prominent in the era of artificial intelligence (AI) regarding Genieons. It also explained that the recent acquisition of a 5% stake by a Morgan Stanley subsidiary is a well-founded purchase.

Researcher Lee Chung-heon of ValueFinder stated in the report on the same day, “Genieons' main products consist of NAC, which manages internal corporate networks, and EDR, which monitors user behavior and inside PCs to detect and respond to unknown threats.” According to the 2024 Public Procurement Service data, the company holds the top market share with 75% for NAC and 49% for EDR.

Lee said, “Recently, Morgan Stanley’s subsidiary, Morgan Stanley & Co. International PLC, disclosed the acquisition of a 5.04% stake in the company, and including the 15.12% stake held by the second-largest shareholder Miri Capital Management LLC, the total foreign ownership reaches 24%.” He analyzed, “It is rare for foreign investors to hold 24% of shares in a domestic small-cap company, which indicates attention to the company’s growth potential.”

He also mentioned, “Currently, it is known that more than 300,000 new malware variants are created daily worldwide. Vaccines can only be developed after new malware appears, which clearly limits their effectiveness, but EDR can respond to unknown malware, making it highly regarded globally at present.”

Additionally, Genieons is expanding into the global private market and currently has 143 clients in 27 countries overseas. The company also achieved significant results by participating in GITEX 2024, the largest ICT exhibition in the Middle East held in the UAE last year.

Lee forecasted, “For the first time since its founding, the company canceled treasury shares equivalent to 3.9% of issued shares last year,” adding, “This trend is expected to continue in line with the growth in performance.” He further analyzed, “The company holds approximately 35.7 billion KRW in cash assets and maintains a debt-free management structure, resulting in very high financial stability. The current price-to-earnings ratio (PER) is about 8.8 times, and considering the historical PER bottom of 8 times, it can be seen as undervalued.”