[Click eStock] "RSUPPORT, Benefiting from Expansion Across the Remote Technology Industry"

[Asia Economy Reporter Park Jihwan] Shinhan Financial Investment maintained a 'Buy' rating on RSUPPORT on the 17th, stating that the convenience and efficiency of remote technology will expand across industries even after COVID-19. However, the target price was lowered by 25% from 20,000 KRW to 15,000 KRW due to adjustments in earnings estimates.

Researcher Oh Kangho of Shinhan Financial Investment said, "Fourth-quarter sales last year are expected to increase by 33% year-on-year to 11 billion KRW," adding, "Operating profit is estimated to record 3.7 billion KRW, up 117%." The growth in the non-face-to-face market due to the spread of COVID-19 domestically and internationally is expected to drive earnings growth. Sales by product are expected to be 4.8 billion KRW (+205%) for RemoteView and 5.4 billion KRW (-14%) for RemoteCall. Due to the leverage effect from expanded product sales, the operating profit margin is expected to stand out at 33.9%, indicating high profitability.

Growth is expected to continue even after COVID-19. Researcher Oh explained, "The social paradigm is rapidly changing due to COVID-19," adding, "Work-from-home within companies, education, and exercise through remote platforms are becoming essential items in society."

Government policy expansion is also a noteworthy factor. Since the 16th, the government has been supporting non-face-to-face service vouchers until the business budget is exhausted. With 90% support per product, Oh believes that demand increase due to policy expansion is inevitable. Accordingly, sales this year are expected to reach 57.5 billion KRW, with operating profit at 23.1 billion KRW.

Researcher Oh stated, "Even after COVID-19, the increase in demand for non-face-to-face services and the implementation of domestic K-Non-face-to-face vouchers ensure earnings growth this year," adding, "The current stock price range is undervalued compared to global companies, and earnings growth driven by increased software demand due to paradigm shifts is expected."

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