[Click e-Stock] "RaonSecure Turns Profitable in Q3...Solid Growth Momentum"

Yuanta Securities stated on November 18 that RaonSecure has attracted market attention by recording a remarkable improvement in its third-quarter performance this year.

Kwon Myungjun, a researcher at Yuanta Securities, said, “In the third quarter of this year, revenue reached 15.98 billion won, up 7.0% year-on-year, and operating profit turned positive to 1.6 billion won. This is the first time in seven years since 2018 that the company has posted an operating profit in the third quarter.”

Kwon identified three factors behind this performance improvement. The first is the trend of strengthening security based on Zero Trust (ZT). He explained, “Revenue from the integrated access management solution ‘TouchEn WiseAccess’ grew 61% year-on-year.” The second factor is the expansion into the Japanese market. As unauthorized access and transactions have increased in Japan’s financial sector, the importance of biometric authentication has grown, leading to the expansion of the TouchEn OnePass business and the adoption of the solution by multiple Japanese securities firms. The third factor is the penetration testing business. Whitehat consulting revenue in the third quarter increased by more than 30% year-on-year. RaonSecure is the only premium penetration testing specialist in Korea and is gaining attention from both corporate and government clients.

The company is also expected to maintain strong growth momentum going forward. With the government announcing a comprehensive inter-ministerial information security plan that includes mandatory multi-factor authentication, demand for FIDO-based biometric authentication is expected to increase not only in the B2G sector but also in the B2B market. In addition, as hacking incidents at government agencies and corporations increase, demand for penetration testing is likely to become constant, which means RaonSecure stands to benefit directly from the growth of the penetration testing market.

Furthermore, based on its experience in the mobile ID business, the company is expected to see increased revenue from verification solutions as use cases expand, as well as the possibility of overseas expansion. In the AI security sector, the company announced, “We plan to apply AI video-based deepfake detection technology and the DeepVoice voice modulation identification technology to our mobile antivirus app.”

Kwon added, “In addition, the company is building the nation’s first quantum-resistant cryptography-based medical data relay platform, which is scheduled to be implemented mainly in large hospitals, raising expectations for the performance of new businesses.”

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