"Is a 7x PER AI Software Stock Real?"... Hancom Hits 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) has recorded the highest-ever quarterly revenue, led by the expansion of its artificial intelligence (AI) business. According to securities analysts, the company's performance is expected to continue improving in the second half of the year, as momentum from the AI-based work environment (AX) business and growth in its defense subsidiaries reinforce each other.

Jongsun Park, an analyst at Eugene Investment & Securities, commented, "The most significant change for Hancom is the full-fledged transformation of its business centered on AI," adding, "Profitability has temporarily declined, but the foundation for growth is being further solidified."

According to Hancom's preliminary consolidated results for the second quarter of this year, revenue reached 120 billion won, a 38.8% increase compared to the same period last year, and the highest quarterly figure in the company's history. In contrast, operating profit was 14.3 billion won, down 12.6% year-on-year. While revenue exceeded market expectations, operating profit fell short.

The core driver for these results was the expansion in the AI business. On a separate basis, revenue was 52.1 billion won, setting a new quarterly record. The company attributes this to the full-fledged result of pivoting from a traditional electronic document-centric business structure to one focused on AI-based services. In fact, sales from new businesses including AI grew 91.9% year-on-year, and their share of total revenue surged from 24.1% to 41.4%.

On the other hand, profitability was negatively affected by the transitional phase. An increase in investments in new AI businesses, the rising proportion of hardware sales, and operating losses at consolidated subsidiaries all contributed to a drop in operating margin. The headquarters itself also saw a temporary decline in profitability during the transition to an AI-centric business structure.

Analyst Park explained, "During the rapid transition to an AI-focused revenue structure, the burden of costs increased, but profitability should gradually recover. This phase is where growth potential from the expansion of the AI business becomes even more important."

In consolidated results, the role of subsidiary Hancom Lifecare was also notable. Benefiting from increased defense business supply, Hancom Lifecare also posted its highest-ever quarterly revenue, contributing to overall top-line growth. However, losses at some consolidated subsidiaries limited the improvement in total operating profit.

Securities analysts anticipate continued performance growth in the second half of the year. Eugene Investment & Securities estimates third-quarter consolidated revenue at 106.7 billion won and operating profit at 14.8 billion won, up 26.9% and 19.7%, respectively, year-on-year. The expansion of the AI business at headquarters and growth in Hancom Lifecare's defense business are expected to underpin these results.

In particular, the second half will see the full-scale advancement of AI business initiatives. The company plans to increase the share of customized products that combine AI capabilities with existing installed software, while also releasing a beta version of "Agentic OS" for verification in both domestic and overseas markets. The official product launch is targeted for the first half of next year.

Analyst Park added, "Commercialization of Agentic OS and expansion of AX-based business could become new pillars of growth for Hancom. At present, the company's price-to-earnings ratio (PER) is only about seven times this year's expected earnings, which is significantly lower than the average for domestic software firms, indicating ample valuation appeal."

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