[Click e-Stock] "UBIVELOX Holds Multiple Top Positions in Korea... All-Time High Sales, Yet Undervalued"

On March 20, SK Securities analyzed that UBIVELOX is continuing its growth trajectory, setting a new record for its highest-ever sales, thanks to its exclusive business position based on its smart card operating system (COS). The company has secured a stable performance base through a diversified business portfolio that includes security and authentication, automotive electronics, and home appliance distribution. This year, the emergence of new growth momentum is expected to become more pronounced.

SK Securities researcher Na Seungdoo stated, "UBIVELOX has established an oligopoly in the domestic card manufacturing and distribution market by localizing the core smart card operating system, COS." He added, "Recently, the proportion of high value-added card products such as metal cards supplied to domestic and international clients has been increasing." He further explained, "The company's fundamental competitiveness lies in embedded software technologies such as COS, which is why it is expanding its security and authentication business into sectors such as finance, public institutions, and data center servers."

From a performance perspective, growth in scale has also continued. UBIVELOX recorded sales of 668.5 billion won last year, marking a 10% increase from the previous year and achieving the highest sales in its history. However, due to higher costs of goods, including semiconductors, and increased selling, general and administrative expenses, operating profit declined by 37% year-on-year to 21.6 billion won. Researcher Na evaluated, "Although operating profit decreased last year due to rising costs of goods such as semiconductors and increased SG&A expenses, sales rose to reach an all-time high."

The automotive electronics business is also experiencing rapid growth. UBIVELOX maintains the number one market share in the domestic black box sector while expanding exports to overseas markets such as North America and Europe. In particular, the company has proven its technological competitiveness through a supply contract with BMW’s global headquarters and has successfully entered the original equipment manufacturer (OEM) market by securing Mercedes-Benz Korea as a new client. Researcher Na explained, "This signifies a clear entry into the OEM market for finished vehicles, and the growth trend in the aftermarket is also notable."

The home appliance distribution business has also established itself as a stable pillar of growth. UBIVELOX is responsible for the domestic distribution of the Roborock robotic vacuum cleaner brand and has continued to expand its sales. Researcher Na commented, "Since Roborock maintains the number one market share globally and domestically, and its domestic distribution sales continue to grow, the company has firmly established a stable performance base."

This year, new business opportunities are expected to be fully reflected in the company's performance. A representative example is the commercialization of the KLSC, the Korean payment standard. Researcher Na emphasized, "As a KLSC technology operator, UBIVELOX is expected to generate exclusive profits from the issuance of new KLSC-standard cards and operation of the payment environment," adding, "It is important to note that commercialization is imminent this year, following more than 20 years of research and development."

Intellectual property (IP) related litigation is also cited as an additional source of revenue. Researcher Na explained, "The lawsuits are based on the concept of rightfully demanding royalties from global companies that have been inadvertently using the company’s patents," noting, "Since these cases are being conducted in the United States, where IP protection standards are relatively high, there is a high probability of achieving favorable outcomes."

He added, "UBIVELOX has consistently expanded its scale over the past 10 years without experiencing any decline. Although profitability appeared to stall briefly after 2023, this was a growing pain resulting from simultaneous business expansion and investment in future technologies," adding, "Given that the company’s basic earning power—annual profits exceeding 20 billion won—has been thoroughly validated, the current stock price is in an excessively undervalued phase."

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