[Click eStock] "Aton, Fintech Platform Growth... Expected Record High Performance This Year"

[Asia Economy Reporter Hyunseok Yoo] Kiwoom Securities analyzed on the 18th that Aton is expected to achieve its highest-ever performance this year through the growth of its fintech platform. No investment opinion or target price was presented.

Aton recorded sales of 12.5 billion KRW and operating profit of 4 billion KRW in the second quarter. This represents increases of 58.9% and 349%, respectively, compared to the same period last year. It exceeded the total operating profit for the entire year of 2020 by more than double. By business segment, fintech security solution sales reached 6.5 billion KRW, up 84.9% year-on-year, while smart finance sales increased by 311% to 3.4 billion KRW.

Kim Doohyun, a researcher at Kiwoom Securities, said, "The operating profit margin in the second quarter was 32%, which is attributed to the reduction in development labor costs due to the nature of sales in the fintech security solution segment, where services already implemented are provided." He added, "As new customers increase in the security solution and smart finance segments, we expect a continuous rise in operating profit margin." He further stated, "In the third quarter, due to new orders and revenue recognition based on the progress of existing order backlogs, performance is expected to remain at a similar level to the second quarter."

Future performance growth is also anticipated. Kiwoom Securities forecasts Aton's sales and operating profit for this year to be 40.4 billion KRW and 9.5 billion KRW, respectively, representing increases of 39% and 352% compared to the previous year.

The clear growth in the fintech security solution and smart finance segments, along with the growth potential of the fintech platform, is expected to drive future performance. He explained, "In the security solution field, by providing services based on previously established technology, additional development costs will be reduced, thereby increasing operating profit margin." He added, "Riding on the smart finance trend driven by the digital transformation of financial institutions, the customer base is expected to diversify further, starting with banks, securities firms, and card companies."

In particular, starting with the application of year-end tax settlement and the application of private certification to 55 public institutions within the year, Aton's fintech platform segment is expected to become a growth engine. He emphasized, "Currently, the cumulative issuance of Aton's private certification platform PASS is estimated at 30 million cases, positioning it as a leader in the overheated private certification market." He continued, "Additionally, as personal authentication became mandatory for COVID-19 vaccination, the number of PASS users is expected to exceed 34 million within the year, which is anticipated to drive future performance."

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