RSUPPORT, Non-Face-to-Face Demand Drives Early Sales Growth in Japan... Strengthening Domestic Market Strategy

As confirmed cases of the novel coronavirus infection (COVID-19) surge, more companies are adopting remote work. Samsung Electronics is introducing remote work for all employees except those in the semiconductor division for the first time since the COVID-19 outbreak. LG Electronics has also decided to expand remote work to more than 30% of its employees. Many companies had previously refrained from adopting remote work due to concerns about decreased efficiency. However, as more companies have experienced remote work amid the COVID-19 crisis, the likelihood of remote work becoming a new standard work style has increased. It is expected that more companies will build environments that enable remote work in preparation for unforeseen circumstances. To establish a remote work environment, enterprise collaboration platforms that support group messengers, video conferencing systems, remote PC control, and cloud services are necessary. Recently, stocks of solution providers supporting remote work have surged in the domestic stock market. Asia Economy reviews the management status of companies such as RSUPPORT, ECS, and Fasoo to gauge the potential for increased corporate value.

[Asia Economy Reporter Yoo Hyun-seok] The growth of remote support software company RSUPPORT is steep. As remote work has become more active, many companies have started using the company's software. Due to the resurgence of COVID-19, performance improvement is expected to continue in the second half of the year.

Founded in 2001, RSUPPORT develops cloud-based remote support (RemoteCall) and control (RemoteView) software. Its main services include remote support, remote control, video conferencing, and Mobizen. It is also the leading cloud-based remote support service provider in the domestic and Asian markets.

Since last year, RSUPPORT's performance has improved, supported by the activation of remote work in Japan. The Japanese government encouraged companies to implement telework to alleviate urban traffic congestion during the Tokyo Olympics, which increased local supply volumes.

This year, performance growth has accelerated further. On a consolidated basis for the first half of the year, sales and operating profit were 25.9 billion KRW and 11.5 billion KRW, respectively, representing increases of 94.2% and 273.2% compared to the same period last year. Notably, sales growth in the RemoteView segment stands out. It recorded sales of 15.7 billion KRW, more than double last year's 6.8 billion KRW. Of this, exports amounted to 14 billion KRW.

This is attributed to the rapid spread of remote work in Japan due to COVID-19, which sharply increased demand for remote control software. A company official explained, "90% of total overseas sales in the first half of the year occurred in Japan," adding, "Demand increased significantly across related product lines." He also said, "We provided remote work solutions for free in the first half, and the paid conversion rate in Japan reached 50%."

If performance improvement continues, the large loss incurred in the first quarter is expected to be recovered. RSUPPORT recorded a net loss of 20.3 billion KRW in the first quarter due to derivative transaction losses incurred in February. However, this loss decreased to 7.6 billion KRW on a cumulative basis by the second quarter. Along with this, the debt ratio is also decreasing. The debt ratio, which was 26.7% at the end of last year, rose to 42.5% in the first quarter due to derivative losses but fell to 36.7% in the first half of this year.

The outlook for the second half is also positive. As COVID-19 resurges, sales of remote support software are expected to increase. According to FnGuide, securities firms forecast RSUPPORT's sales and operating profit for this year to be 54.8 billion KRW and 24.1 billion KRW, respectively, increases of 92.11% and 316.09% compared to the previous year. Three months ago, the sales and operating profit forecasts were 33.7 billion KRW and 9.8 billion KRW.

RSUPPORT plans to strengthen domestic sales in the second half. It expects the "Digital Transformation Project for Small and Venture Businesses Utilizing Non-Face-to-Face Service Vouchers," announced this month by the Ministry of SMEs and Startups, to be a positive factor. This project supports small and venture businesses in using services such as video conferencing, remote work, and network security solutions. A company official emphasized, "We have applied as a supplier for non-face-to-face service vouchers including remote work, video conferencing, and edutech," adding, "We expect this to help domestic sales growth in the second half and next year."

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