[Click eStock] "S-1, Unwavering Growth Despite COVID-19"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment evaluated on the 20th that S-1 is showing an unyielding growth trend despite the novel coronavirus disease (COVID-19). Hana Financial Investment did not provide a separate investment opinion or target price.

Kim Doohyun, a researcher at Hana Financial Investment, said, "S-1 has secured mid- to long-term growth momentum through the expansion of non-face-to-face (untact) business," and "It operates physical security and building management service businesses, and holds a solid market position with about 55% market share in the physical security market, showing stable performance growth based on this."

S-1's second-quarter performance this year is expected to record sales of 554.6 billion KRW and operating profit of 60.1 billion KRW, increasing by 1.7% and 1.6%, respectively.

According to Hana Financial Investment, in S-1's system security division, the number of subscribers decreased in the first quarter as general commercial customers, which had driven subscriber growth, were hit by COVID-19, but from the second quarter, the number of subscribers increased compared to the previous quarter, entering a recovery phase.

Also, the order backlog in the product sales division recorded 193 billion KRW as of the first quarter, with sales recognition delayed due to construction delays at client companies caused by COVID-19. However, it is expected to show continuous quarterly growth as construction gradually resumes from the second quarter.

Kim Doohyun, a researcher at Hana Financial Investment, explained, "Sales are expected to grow significantly as re-contracts with major clients in the integrated security division are executed," adding, "The contract period with major clients is two years, and this re-contract reflects the minimum wage increases in 2019 and 2020, resulting in an upward adjustment of the contract amount."

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