[Eugene Investment & Securities] Emro : Still a strong 2024 candidate - Only the share price has changed(2023.11)
This is an update report published by Se-hee Kim, Analyst at Eugene Investment & Securities.
NDR Review: Emro : Still a strong 2024 candidate - Only the share price has changed
- Emro recorded 3Q23 revenue of KRW 16.5bn (+9.5% QoQ, +6.7% YoY) and operating profit of KRW 1.3bn (+11.5% QoQ, –40.2% YoY).
- Cumulative revenue for the first three quarters reached KRW 45.8bn, marking the highest level in the company’s history.
- Backlog continues to rise, reaching KRW 50.3bn as of October.
- The decline in operating profit is attributable to costs associated with developing the integrated SCM SaaS platform and other preparations for next year's overseas expansion.
- Reflecting the development expenses, the 2023 earnings outlook stands at KRW 66.2bn in revenue and KRW 5.6bn in operating profit.
- The integrated SCM SaaS platform is expected to launch in 1Q without delay, with overseas revenue likely to begin as early as 2Q–3Q.
- Full-scale earnings growth and valuation re-rating expected as overseas expansion begins.
