[Click eStock] "S1, 'Security & Building Management' Dual Drive... Target Price Up"

On the 25th, Samsung Securities raised the target price of S-1, a security specialist company affiliated with Samsung Group, by about 5%. It is expected to continue improving its performance as demand for security and building management solutions expands.

S-1's 'Intelligent School Safety Solution' Gains Popularity

S-1 announced in its third-quarter earnings report that it achieved consolidated sales of 682.8 billion KRW and an operating profit of 60.3 billion KRW. This represents increases of 5.8% and 12.6%, respectively, compared to the same period last year, surpassing market expectations (consensus).

Minha Choi, an analyst at Samsung Securities, said, "Security and office management (infrastructure) services showed steady sales growth due to an increase in customers and price hikes," adding, "There were no one-time costs such as the remodeling of the Cheonan Talent Development Center in the second quarter, resulting in a high operating leverage from sales growth."

Analyst Choi forecasted, "Demand for physical security business is growing, centered on the video access market," and "As demand for advanced video security increases, the market for solutions such as high-resolution and AI-embedded cameras will continue to expand." He also predicted, "The building management business will contribute to reducing building management costs, leading to price increases and expanding profitability by increasing the managed building area."

He added, "The security and building management businesses are capturing new orders and growth opportunities with customized products and services in response to changes in market demand," and "As S-1 is included in the value-up index components, it will also announce mid- to long-term plans to improve corporate value."