[Click eStock] "Emro's Overseas Business Progressing Smoothly"

On November 18, Korea Investment & Securities analyzed that Emro's overseas business is progressing smoothly.

In the third quarter of this year, Emro recorded sales of 21.3 billion won and operating profit of 300 million won. Compared to the same period last year, these figures represent decreases of 8.2% and 92.8%, respectively.

Yoon Cheolhwan, a researcher at Korea Investment & Securities, stated, "Based on next-generation projects, Emro has maintained quarterly sales in the 20 billion won range for five consecutive quarters." He added, "However, due to the high base effect, sales saw a slight decline."

He continued, "Although the proportion of technology-based sales, which are relatively more profitable, reached 39.6%, overall profitability was weak due to large-scale recruitment and increased development costs for the global SRM SaaS platform."

It is estimated that Emro will achieve annual sales of 85.4 billion won and operating profit of 1.8 billion won this year. This represents a 7.5% increase in sales and a 79.2% decrease in operating profit compared to last year.

Yoon commented, "Recently, investment execution has been delayed across the corporate sector due to increased macroeconomic uncertainty," and predicted, "As revenue from next-generation SRM projects will be reflected through the beginning of the fourth quarter, Emro will maintain stable top-line growth."

He further analyzed, "In addition to the effect of rising fixed costs, one-off expenses are expected to occur through the fourth quarter," and added, "Profitability will be undermined."

He also emphasized, "Despite this year's weak performance, investor attention will shift to next year's overseas business," and noted, "Recently, Emro has established a concrete and diverse sales pipeline for its global SRM business, particularly focusing on the North American and European markets." He continued, "Meaningful contract wins are likely in the near future," and projected, "This will demonstrate Emro's potential for mid- to long-term growth."

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