[Click eStock] "Suprema, Unbeatable Value... Record-High Q4 Results Expected"

On October 31, KB Securities analyzed that Suprema is expected to achieve record-breaking results in the fourth quarter, driven by the global expansion of AI data centers and strong sales of facial recognition products.

In the third quarter of this year, Suprema's consolidated revenue reached 30.35 billion KRW, marking a 20.9% increase compared to the same period last year. Operating profit was 6.52 billion KRW, up 13.8%, with an operating margin (OPM) of 21.5%. Net profit attributable to controlling shareholders surged by 161.1% to 10.62 billion KRW. The analyst explained, "Although there was a decrease in sales compared to the previous quarter due to recent global geopolitical issues, net profit increased significantly as foreign exchange gains from the rise in the KRW-USD exchange rate were reflected."

KB Securities maintained its annual performance outlook for Suprema in 2025. Revenue is projected to reach 135.5 billion KRW, a 25.2% increase year-on-year, and operating profit is expected to rise 36.5% to 31.8 billion KRW. Analyst Kim stated, "The fourth quarter is the peak season on a quarterly basis, so record-high quarterly results are anticipated. Suprema is expected to benefit from the global expansion of AI data centers, and with AI and facial recognition products-both highly profitable-accounting for over 50% of sales, an operating margin of around 23.5% should be achievable."

He further emphasized, "Recently, the global physical security market has established the provision of integrated security solutions-combining hardware and software-as an essential trend, driven by advances in AI and cloud technologies. Suprema is enhancing its self-developed Video Management System (VMS) into an AI-based integrated control platform, and has demonstrated its technological prowess by winning consecutive awards at major security exhibitions in Europe."

The growth potential of the North American market is also noteworthy. Analyst Kim commented, "With the Trump administration's MAGA project in full swing, large-scale industrial infrastructure projects such as AI data centers, semiconductor plants, and electric vehicle factories are expanding. Suprema already possesses solid references with major North American companies such as Meta, Equinix, and Hyundai Motor Group, so it is expected to directly benefit from this infrastructure investment expansion."

Meanwhile, Suprema currently holds approximately 200 billion KRW in cash-equivalent assets, with about 45% estimated to be in US dollars. With 20 billion to 30 billion KRW in new cash inflows annually, there is a strong possibility that the company will actively pursue shareholder return policies in line with the new government's initiatives to promote dividends and shareholder returns.

This content was produced with the assistance of AI translation services.