[Click eStock] "Inzisof, AI Competitiveness Expected... Undervalued Compared to Peers"

On the 5th, KB Securities evaluated Inzissoft, stating, "Its current market capitalization is around 56.3 billion KRW. Considering the growth potential of artificial intelligence (AI), market dominance, and the value of shares in unlisted companies, it is undervalued compared to its peers." No specific investment opinion or target price was provided. The closing price on the previous day was 17,140 KRW.

On the same day, Lim Sang-guk, a researcher at KB Securities, said, "Inzissoft achieved a perfect performance turnaround in the third quarter of this year. Its solid financial structure, including a reserve ratio of 3586%, a debt ratio of 11%, and cash equivalents of 35.6 billion KRW as of the end of the second quarter, is also a strength."

Inzissoft recorded sales of 4.72 billion KRW and an operating profit of 950 million KRW in the third quarter. Sales decreased by 19.9% year-on-year, while operating profit increased by 8.7%. Operating profit turned positive compared to the previous quarter. This was due to increased maintenance sales and expanded revenue recognition from the document management system reconstruction project ordered earlier this year.

A notable point is the AI OCR (identification card recognition) technology. Researcher Lim emphasized, "Currently, ChatGPT is centered on B2C (business-to-consumer) transactions, but as it expands its business area into the B2B (business-to-business) market, especially in the financial sector, data acquisition becomes very important. Inzissoft, which possesses top-level technology in the domestic identification card recognition field, is expected to benefit."

He added, "The work of providing an optimal cloud-based electronic document service (QSVC) to promote the spread of digital financial tasks in financial institutions will also act as a growth driver in the future. In this case, basic financial institution counter services can be handled anytime and anywhere without location constraints."

Additionally, amid rapid aging and a declining labor force, Inzissoft’s deep learning-based image recognition solutions, electronic documentation technology, and automated robotics solutions are expected to improve operational efficiency in the financial sector and address labor shortages.

Researcher Lim said, "Inzissoft is expected to achieve significant capital gains as it prepares to relaunch its listing as an unlisted company in the first quarter of next year. Mergers and acquisitions (M&A) using its cash reserves are also anticipated." He added, "However, it is necessary to expand the B2B sector from financial institutions to general manufacturing and to expand business into B2C."