[Click e-Stock] "Vact to Link Procurement and Public Sales Base... New Business Segments Expected to Drive Revenue by 2027"

Vact is raising expectations for external growth as it moves to expand into commercial signage and new growth areas, leveraging its sales base built in the procurement and public markets.

On the 23rd, Hyunwoo Park, a researcher at Shinhan Investment Corp., stated in a report, "Vact is a specialized provider of commercial and educational digital signage, with a diversified downstream market that includes education, XR, and entertainment." He added, "Not only is its signage business promising, but business development is also expected in new growth areas that can be linked to its existing sales base in the procurement and public sectors."

Vact has grown primarily through educational digital signage such as electronic whiteboards and lecterns but is now expanding its business scope to include commercial signage and new business fields. In the education market, the company's first-quarter performance this year was sluggish as some budget executions were delayed due to local election schedules. However, a recovery is expected in the second half of the year, driven by normalization of budget execution and the resumption of public procurement orders.

Researcher Park commented, "In the first quarter of last year, sales amounted to 15.7 billion won, down 23% year-on-year, and operating profit turned to a loss at 700 million won," explaining, "The educational segment underperformed as some budget executions were postponed due to local election schedules."

He continued, "Recovery is expected in the second half of the year with the normalization of budget execution and the resumption of public procurement orders. However, due to intensified competition among companies, the average selling price (ASP) of electronic whiteboards and lecterns continues to decline. The company is therefore seeking growth by expanding the share of commercial signage such as LED displays and projectors."

To expand in the commercial market, Vact is also strengthening partnerships with Chinese display companies. Recently, the company secured exclusive domestic distribution rights for LED display modules and finished products under the Chinese Skyworth brand, targeting the next-generation commercial LED display market.

Researcher Park said, "The company has recently secured exclusive domestic distribution rights for LED display modules and finished products of the Chinese Skyworth brand," adding, "It is expected that the push into the next-generation commercial LED display market will accelerate."

Vact is also expanding business opportunities in new fields by utilizing its nationwide public and private sales network and installation and maintenance capabilities, which it established in the procurement market. In particular, the company is pursuing collaborations in emerging industries such as modular data centers and robotics to secure new growth drivers.

Researcher Park noted, "Based on the nationwide public and private sales network and installation and maintenance capabilities accumulated in the procurement market, the company has signed memorandums of understanding (MOU) in new business areas such as modular data centers and robotics. While these are not in the domains of manufacturing or technology, collaboration with various industries leveraging the sales network is positive."

Going forward, Vact plans to lay the foundation for performance growth by expanding commercial signage and accelerating new businesses. The company is targeting annual sales of more than 20 billion won related to the exclusive domestic distribution rights for commercial LED displays of Chinese brands, and since last year, it has been continuously reviewing business portfolio diversification through mergers and acquisitions (M&A).

Researcher Park added, "By 2027, external growth is expected through the expansion of the commercial segment and the commercialization of new areas. However, potential volatility in performance due to government policy changes needs to be monitored."

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