[Click eStock] "Hecto Innovation's Q2 Results Driven by Healthcare and Fintech"

GL Research analyzed on August 26 that Hecto Innovation achieved its highest-ever consolidated performance in the second quarter. The company did not provide an investment opinion or a target price.

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Hecto Innovation recorded consolidated sales of 91.8 billion won and operating profit of 13.4 billion won in the second quarter. Compared to the same period last year, these figures increased by 17.9% and 19.5%, respectively. Park Changyoon, a researcher at GL Research, stated, "Robust sales continued in the IT information service and fintech divisions, while the healthcare division saw sales growth driven by the expansion of both online and offline distribution channels for De Simone." He added, "The increase in profitability was due to reduced operating expenses, such as advertising costs, as well as a decrease in corporate taxes."

Continued growth is also expected moving forward. In the IT information service sector, the company is currently providing stable services mainly to the three major telecommunications companies. Based on its accumulated operational experience, it plans to expand its customer base to industries beyond telecommunications in the future.

For the fintech business, growth in overseas settlement services and the benefits of stablecoins are anticipated.

Researcher Park Changyoon explained, "The fintech division (subsidiary Hecto Financial) is the only company in Korea to offer all payment methods, including simple cash payments, credit cards, and mobile payments." He continued, "Regarding stablecoins, which are gaining attention as a new payment method in the global market, Hecto Financial is preparing a stablecoin distribution business utilizing Korea's domestic payment transfer network."

He added, "It is highly likely that the company will directly benefit from the future expansion of the stablecoin-based payment and settlement market."

Growth is also expected in the healthcare sector. The subsidiary Hecto Healthcare will expand its lineup of probiotic products this year, including oral probiotics and women's probiotics. In addition, it will launch the inner beauty brand 'OnRitual' and introduce new products such as 'Slimming Cut Diet,' 'Glow Up Collagen,' and the children's growth development product 'Kim Seokjin LAB I'm Big Key.'

He emphasized, "The company recently demonstrated its global expansion potential by signing an exclusive distribution agreement in China with a subsidiary of Sinopharm, the country's leading pharmaceutical group. Going forward, business expansion is expected to focus on the Asian region."

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