[Click eStock] "WINS, Benefiting from Domestic and International 5G Subscriber Growth"

[Asia Economy Reporter Eunmo Koo] An analysis suggests that Wins is expected to continue growing steadily in domestic and international markets due to increased network traffic.

Starting in the second half of this year, Wins began full-scale supply of its latest 100G version (previously 40G) of its flagship network security device, the Intrusion Prevention System (IPS). On the 23rd, Lee Seunghoon, a researcher at IBK Investment & Securities, stated in a report, "Since the new product is priced at about twice that of the existing one, growth in scale and profitability improvement are expected depending on new and replacement demand." He added, "The number of domestic 5G subscribers is expected to exceed 10 million this year, and recent data shows that traffic per subscriber for LTE and 5G are 10.1GB and 26.0GB respectively. With the transition to 5G causing a surge in traffic, it is anticipated that high-end products will be supplied not only to domestic telecom companies and public sectors but also overseas in the future."

In the fourth quarter, supplying 100G products to LG Uplus and KT is expected to achieve growth in scale and profitability improvement. The researcher explained, "Since future 5G networks are expected to be secured with 100G IPS, supply of 100G products will increase in 2021 as 5G subscribers grow." Meanwhile, from next year, the government plans to actively invest in infrastructure for big data processing under the Digital New Deal policy, so sales in the public sector are also expected to increase.

The investment opinion was maintained as 'Buy,' and the target stock price was raised to 23,000 KRW. The researcher estimated, "Considering Wins' market dominance and overseas export competitiveness, the discount factor compared to other companies is limited," and projected that in the fourth quarter, sales will increase by 4.9% year-on-year to 36.9 billion KRW, while operating profit will decrease by 10.4% to 7.9 billion KRW.

Furthermore, he forecasted, "With the full-scale supply of 100G IPS products to telecom companies and increased public sector volume related to the Digital New Deal, growth is expected next year as well. If 100G IPS products and next-generation firewalls (NGFW) begin to be supplied to Japan from the first half of the year, the performance improvement trend will accelerate even more."

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