[Click eStock] "Deepnoid Exceeds Order Targets... Q4 Growth Accelerates"

Hana Securities analyzed on the 15th that Deepnoid has exceeded its target orders for this year and that sales growth in the fourth quarter will begin in earnest.

Deepnoid recorded sales of 500 million KRW and an operating loss of 1.6 billion KRW in the third quarter of this year. Jo Jung-hyun, a researcher at Hana Securities, said, “Until the third quarter of this year, Deepnoid focused on R&D of its machine learning AI solution DEEP:FACTORY and securing references from display and secondary battery clients,” adding, “Tests with major clients were completed in the first half of the year, and visible DEEP:FACTORY order achievements have been recorded, so sales are expected to be recognized in earnest in the fourth quarter.”

In particular, sales growth of industrial AI solutions is expected to begin from the fourth quarter. In October, Deepnoid secured 7.5 billion KRW worth of machine vision solution orders for a global secondary battery client, exceeding the existing target with a cumulative order amount of 10 billion KRW for industrial AI solutions.

Researcher Jo explained, “With some project sales being recognized, fourth-quarter sales are expected to be 5.2 billion KRW with an operating loss of 900 million KRW, significantly reducing the quarterly deficit,” and added, “Especially, through collaboration with the global leading machine vision market share No.1 company, DEEP:FACTORY has secured global references.”

Jo emphasized, “AI-based machine vision is expanding its introduction throughout the secondary battery manufacturing process, and additional DEEP:FACTORY orders are expected through the client’s global sales network,” adding, “Since the first mass production for domestic display companies is expected within this year and additional orders for secondary battery clients are anticipated in the first half of next year, a steep sales growth of DEEP:FACTORY is expected.”

Furthermore, with the full-scale registration of medical AI solutions in health insurance, market penetration worth 50 billion KRW is also expected. He said, “In the fourth quarter, the non-reimbursed market entry of the brain aneurysm AI-based imaging diagnostic solution DEEP:NEURO is accelerating, and demonstration projects with major advanced hospitals are underway,” adding, “Especially, in October, the Ministry of Health and Welfare presented specific health insurance fee application plans for medical AI, so the registration of DEEP:NEURO in health insurance is expected to proceed rapidly.”

He continued, “DEEP:NEURO is expected to enter the non-reimbursed market in November, undergo clinical trials for one to two months, and be registered in health insurance in the first quarter of next year,” adding, “Based on 1.1 million annual brain MRA scans (assuming the number of annual cerebrovascular disease patients), the DEEP:NEURO market is expected to reach approximately 50 billion KRW.”

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