[Click eStock] "Suprema Expected to Achieve Record-High Results in Q4 Last Year"

Yuanta Securities analyzed on January 6 that Suprema is expected to achieve record-high results. The company did not provide an investment opinion or target price.

Yuanta Securities projected that Suprema's sales in the fourth quarter of last year would exceed 400 billion won for the first time in a single quarter. Kwon Myungjun, a researcher at Yuanta Securities, stated, "Assuming the fourth quarter sales growth rate is the same as the cumulative growth rate up to the third quarter, sales would reach 42.96 billion won," adding, "Even if we apply the year-on-year growth rate for the fourth quarter over the past four years, it amounts to 41.29 billion won."

He emphasized, "Since no issues have been identified that could undermine the growth rate, it is expected that fourth quarter sales last year will exceed 40 billion won for the first time in a single quarter. If this is achieved, annual sales for last year are projected to reach between 132.8 billion and 134.6 billion won, making not only the quarterly but also the annual results the highest ever."

He also expects growth to continue. He explained, "Domestic companies are constructing fabs in various countries, including North America," and added, "It is expected that investments by many domestic companies in the United States, which has driven sales growth since 2024, will expand further, so growth expectations remain valid."

Additionally, benefits are expected from the transition from access control security to integrated security. He said, "We are actively responding to the demand for integrated security overseas," and added, "Through the merger with SupremaAI, AI-based video analysis capabilities have also been integrated, expanding the scope to video-based abnormal behavior detection and intrusion analysis." He continued, "This means a shift from simple products to becoming a total solution provider."

The transition from fingerprint recognition to facial recognition products was also analyzed as a positive factor. He emphasized, "Demand for contactless products continues," and added, "In the case of Suprema, facial recognition products are at least twice as expensive as fingerprint recognition products. Even this trend change alone is expected to sustain the company’s growth potential."