[Featured Stock] "Undervalued Appeal Highlighted" Suprema Rises Over 4%
The stock price of Suprema, a bio-recognition and physical security company, is on the rise. On the 13th, a corporate report from the securities industry stated, "Considering this year's expected operating profit margin and cash equivalents, Suprema's current stock price is extremely undervalued."
As of 10:11 AM on the same day, Suprema was trading at 25,150 KRW, up 1,000 KRW (4.14%) from the previous trading day.
On the same day, Baek Joon-gi, a researcher at NH Investment & Securities, said, "The price-to-earnings ratio (PER) at the end of 2024 is only 6.4 times, but this year's expected operating profit margin reaches 21.9%," adding, "Considering the cash equivalents holding ratio, which accounts for 75% of the market capitalization, the current stock price is extremely undervalued."
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He stated, "Fourth-quarter sales are expected to increase by 15.2% and 3.7% year-on-year to 34.8 billion KRW and 9.1 billion KRW, respectively," and added, "Thanks to the expansion of market share in Europe and India, favorable exchange rates, and the peak season effect, solid growth will continue." He further explained, "The smartphone fingerprint recognition solution has contributed to profit growth since the second quarter of this year due to customer contract renewals. AI-equipped products are increasing, and benefits are expected from the expansion of the on-device AI security market."
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