[Click e-Stock] "GenieN, Favorable Business Environment"

On November 17, LS Securities analyzed that although GenieN's operating profit for the third quarter decreased compared to the same period last year, the business environment remains favorable.

In the third quarter, the company recorded sales of 10.4 billion KRW and operating profit of 1.1 billion KRW. Compared to the same period last year, sales increased by 0.3%, while operating profit decreased by 52.2%.

Jung Woosung, a researcher at LS Securities, stated, "We estimate that sales from the public sector experienced negative growth in the third quarter," and explained, "This was due to the concentration of the public sector security budget in the second half of the year, which continued to affect results through the third quarter."

He added, "Following the fire at the National Information Resources Service on September 26, there is a possibility that the share of backup solutions in the public security software market will increase," and noted, "This could pose an additional risk to GenieN's public sector sales in the fourth quarter of this year."

Jung further analyzed, "Despite the growing uncertainty in public sector sales this year, the launch of vaccine products could lead to an increase in both the number of public sector bids and the contract amount per project."

He also emphasized, "The comprehensive information security policy across ministries has expanded the mandatory information security disclosure requirement to all listed companies, and there is a clear trend toward strengthening public sector security assessments and accountability," adding, "This is creating a favorable business environment for GenieN."

He predicted, "Operating profit improvement will gradually occur starting next year," and anticipated, "Revenue will begin to materialize in earnest in response to costs related to zero trust and the hiring of vaccine development personnel."

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