[Click eStock] "Deepnoid's Sales Driven by Vision Inspection and Security Solution Segments"

On May 28, SK Securities analyzed that Deepnoid's sales are expected to be driven by its vision inspection and security solution segments.

On May 26, Deepnoid announced that it had signed a supply contract for a secondary battery vision system worth 4 billion KRW. It is expected that more than 80% of the contract amount will be recognized as revenue within this year. In the second quarter, additional contracts related to X-ray security solutions for overseas airports are also scheduled.

Deepnoid's artificial intelligence (AI)-based X-ray automatic interpretation system is being adopted mainly by domestic public institutions and large corporations such as Hyundai Motor and Samsung SDI. The security solution automatically interprets prohibited items for carry-on, such as firearms, bladed weapons, and explosives, as well as storage media (USB drives, memory cards, etc.) for corporate security.

Heo Sunjae, a researcher at SK Securities, explained, "The direction for future growth is to secure stable cash flows from the machine vision and security segments, and to build significant medical AI performance through the establishment of a generative AI platform."

Heo emphasized that attention should be paid to the new generative AI product 'M4CXR' starting in the second half of the year.

He explained, "Although the medical AI sector received significant attention in 2023, concerns about the profit-generating capabilities of major medical AI companies have grown, and the stock prices of major listed domestic companies have, on average, declined by more than 50% from their peaks."

He continued, "Currently, commercialized AI image interpretation solutions have limitations, such as the inability to perform comparative analysis on past images or images from various angles, and the inability to automatically generate interpretation reports, which requires the most time and cost." He added, "These limitations can be overcome with generative AI solutions that utilize imaging data, clinical data, and genomic information."

Heo projected that if Deepnoid enters the remote interpretation market through 'M4CXR', the company will be able to address existing limitations and begin generating profits.

He analyzed, "Deepnoid has achieved vertical integration by securing its own generative AI model, AI interpretation support solutions (for brain, chest, and lungs), PACS (Picture Archiving and Communication System), and 'Hyuain', a specialized medical image interpretation hospital." He added, "The company is expected to see high growth due to bottlenecks in medical image processing and the resulting unmet medical needs of patients."