[Market Focus] 'Even a 60x Multiple Is Cheap' - ICTK's Quantum Cryptography Technology Rivals Global Big Tech

ICTK is showing strong performance. Securities firms have analyzed that, as a leading company in the domestic quantum sector, ICTK is likely to benefit the most at the forefront when the quantum cryptography ecosystem becomes more active in the future, and this analysis appears to be influencing the stock price. Hana Securities set a target price of 28,000 won for ICTK. The firm also emphasized that a target multiple of 60 times is actually a low valuation.

As of 9:29 a.m. on May 15, ICTK was trading at 16,710 won, up 8.23% from the previous day.

Hana Securities analyzed that ICTK is the only company in Korea to have a complete quantum cryptography solution and possesses world-class technology. The firm noted that ICTK has established a business model that differentiates it from existing security companies, offering high profitability and scalability, and therefore set its target price at 28,000 won.

Kim Hongsik, a researcher at Hana Securities, stated, "Recently, quantum computer technology has been developing rapidly," and explained, "If the current pace of development continues, existing security systems will be rendered ineffective between 2035 and 2045." He added, "Transitioning security systems is a process that takes at least several years," and "Institutions in various countries are currently establishing plans to switch their security systems to quantum cryptography before 2035."

Furthermore, he said, "By around 2030 at the latest, the quantum cryptography ecosystem will become active both domestically and internationally, and leading companies will begin to show significant results." He also noted, "In the past, IT and security stocks, and more recently, AI and robotics stocks, experienced sharp stock price increases several years before turning profitable," and predicted, "This time as well, stock prices are expected to rise several years ahead of actual earnings."

He explained, "I expect ICTK's multiple to surge within the next few years," and added, "If market expectations unfold aggressively, we may already be at the beginning of a major upward trend in multiples this year."

Kim said, "If ICTK is at the center of this ecosystem upheaval, a target multiple of 60 times is actually a low valuation," and analyzed, "Given the enormous disruptive power of quantum computers on the ecosystem, if quantum cryptography stocks begin to attract serious attention, they are expected to receive even higher multiples than past future growth sectors such as IT, AI, robotics, and electric vehicles." He predicted, "As a leading quantum cryptography stock, ICTK's high multiple is justified, and the company will lead the ecosystem shift to quantum cryptography based on its overwhelming technological competitiveness."

ICTK is the only company in Korea to have independently developed both quantum cryptography generation technology and quantum cryptography distribution technology. The company is leading the establishment of a global standard security system for cryptographic keys in the quantum cryptography era. Based on its world-class technology, ICTK is expected to achieve an overwhelming market position and profitability in the upcoming quantum cryptography era. Kim emphasized, "ICTK is the only domestic quantum cryptography company to have independently developed both encryption technology and key technology," and noted, "Most companies possess only algorithm technology, and even those with key technology have only TRNG/QRNG technology."

He said, "Globally, only about three companies possess commercialization-level PUF technology," and added, "Each company's PUF technology is different, but ICTK's VIA-PUF technology is the most suitable for security." He continued, "The excellence of ICTK's security technology can also be confirmed with quantitative indicators," and introduced, "As of 2022, the number of PUF-related patents held by ICTK exceeds that of global semiconductor companies."

He further stated, "ICTK filed for more patents earlier and in greater numbers than leading global semiconductor companies, which leads me to believe that ICTK holds a monopolistic technological position as a pioneer in PUF," and predicted, "In the upcoming quantum cryptography era, ICTK has already established an unrivaled position domestically and will secure a dominant market position globally as well."