‘AI Bet’ Pays Off... This Company Achieves Record-High Revenue [Weekend Money]

AI Business Revenue Soars 91.9% Year-on-Year, Driving Top-Line Growth
Commercialization of Agentic OS and Defense Subsidiary Expansion Fuel Hopes for the Second Half

Hancom (030520) recorded its highest-ever quarterly revenue, driven by the expansion of its artificial intelligence (AI) business. According to the securities industry, Hancom is expected to continue improving its performance in the second half of the year, as the growth of its AI-based work environment (AX) business aligns with the momentum of its defense affiliate.

Park Jongseon, a researcher at Eugene Investment & Securities, commented on Hancom, stating, “The most significant change is that the company is now undergoing a full-scale transformation toward an AI-centered business." He added, "Although profitability has temporarily dipped, the foundation for future growth has been further strengthened."

Hancom's consolidated provisional revenue for the second quarter of this year reached 120 billion won, a 38.8% increase from the same period last year, marking the company's highest quarterly revenue to date. In contrast, operating profit was 14.3 billion won, down 12.6% from a year earlier. While revenue exceeded market expectations, operating profit fell short of forecasts.

The core driver of this performance is the expansion of the AI business. On a separate basis, revenue stood at 52.1 billion won, also setting a new quarterly record. The shift from an electronic document-focused business to one centered on AI-based services has begun to bear fruit. In fact, revenue from AI and other new businesses surged by 91.9% year-on-year, and its share of total revenue soared from 24.1% to 41.4%.

However, profitability could not avoid the transitional impact. Investments in new AI businesses, a greater proportion of hardware sales, and operating losses from consolidated subsidiaries led to a decline in operating margin. The head office also experienced a temporary decline in profitability during the shift to an AI-centered business structure.

Park explained, "During the rapid transition to an AI-centered revenue structure, costs increased, but profitability is expected to recover gradually. At this stage, the growth potential from AI business expansion is becoming even more important."

In terms of consolidated performance, Hancom Lifecare, a subsidiary, also played a prominent role. Bolstered by increased defense business supply, Hancom Lifecare achieved its own record quarterly revenue, contributing to overall growth. However, operating profit growth at the group level was limited due to losses from some consolidated subsidiaries.

The securities industry expects performance growth to continue into the second half. Eugene Investment & Securities estimates consolidated revenue for the third quarter will be 106.7 billion won, and operating profit 14.8 billion won, up 26.9% and 19.7% year-on-year, respectively. The expansion of Hancom's AI business and growth of Hancom Lifecare’s defense business are projected to underpin the company’s performance.

Especially in the second half of the year, AI business sophistication will accelerate. Hancom plans to increase the share of customized products by integrating AI features into its existing on-premises software and release a beta version of 'Agentic OS' for validation in domestic and international markets. The official launch is scheduled for the first half of next year.

Park added, “The commercialization of Agentic OS and the scaling up of AX-based business could become new growth engines for Hancom. At its current share price, Hancom is trading at around 7 times this year’s expected price-earnings ratio (PER), which is significantly lower than the average for domestic software companies, making its valuation particularly attractive.”

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