[Click eStock] "Deepnoid, Full Growth with Industrial AI Market Blossoming This Year"

Kiwoom Securities analyzed on the 2nd that Deepnoid will show significant growth this year due to the blooming industrial artificial intelligence (AI) market.

Oh Hyunjin, a researcher at Kiwoom Securities, explained in a report on the same day, "The fourth-quarter performance last year fell short of expectations," adding, "It is understood that some of the industrial AI orders' revenue recognition was deferred to this year due to changes in accounting standards."

He stated, "As of the end of last year, the backlog of industrial AI orders exceeded 9 billion KRW, indicating high visibility for performance growth this year," and analyzed, "In the case of DEEP: FACTORY, the supply contract worth 7.5 billion KRW, ordered in October last year, is expected to be recognized as revenue in earnest, and additional growth is anticipated through follow-up orders with global machine vision specialists."

He also noted, "DEEP: SECURITY should be noted for its expansion of applications based on data competitiveness through market preemption," and added, "Recently, through collaboration with the Korea Customs Service, a solution to block the import of drugs and illegal goods is being developed, and business expansion into the customs clearance sector is expected in the future by linking with customs systems."

Furthermore, he projected, "Deepnoid's performance forecast for this year is 19.7 billion KRW in sales and 6 billion KRW in operating profit, representing increases of 1238% and a turnaround to profitability compared to the previous year," and judged, "Despite valid growth potential, the stock price has fallen more than 20% since the beginning of the year; considering the high visibility of performance growth this year through the order backlog and the fact that the industrial AI market is entering a full-fledged blooming phase, it is currently undervalued."

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