[Stock in Focus] Autocrypt Rises Over 4% on Expectations of Turning a Profit in Q4

With expectations for improved performance, shares of Autocrypt, an automotive software security solutions and technology company, are on the rise. As of 9:17 a.m. on October 21, Autocrypt was trading at 14,000 won, up 570 won (4.24%) from the previous trading day.

On this day, Korea Investment & Securities commented on Autocrypt, saying, "The operating loss in the third quarter of this year is expected to shrink significantly," and added, "There is also a high possibility that the company will turn an operating profit in the fourth quarter."

Kim Changho, a researcher at Korea Investment & Securities, stated, "Autocrypt's core revenue comes from royalty sales," and explained, "When projects carried out for automakers and parts manufacturers are converted into royalty sales, the pace of profit growth accelerates."

He further emphasized, "Currently, only the first royalty project secured in 2020 is reflected in sales, but as of last year, a total of 16 mass-production development projects have been secured. Depending on the production schedules of automakers, royalties from the second to the sixth projects will soon be reflected in sales sequentially. In addition, the company is continuously winning contracts to build security systems for global original equipment manufacturers (OEMs)."