Namseong Sees 720% Surge in Q2 Operating Profit... Growth Driven by Walmart Sales Expansion and New AI Products

On August 6, Namseong Co., Ltd. (004270) announced that for the second quarter of this year, its consolidated operating profit reached 3.29 billion won, marking a 720% increase compared to the same period last year. During the same period, sales amounted to 21.617 billion won, up 15.5% year-on-year, and net profit swung to a surplus, reaching 3.084 billion won.

This improvement in performance was primarily driven by the expanded sales of "On-Dash" vehicle products supplied to Walmart, the largest retailer in the United States. Namseong currently supplies 7-inch, 10.1-inch, and 10.36-inch On-Dash products to Walmart, with sales of these products increasing compared to the same period last year.

In particular, the operating profit rose significantly as the proportion of highly profitable, high value-added products increased. The combination of sales growth and improved profitability also enabled the company to swing to a net profit.

The company stated that the performance outlook for the second half of the year is also positive. Strong sales of existing On-Dash products are expected to continue, while Walmart sales results for the new in-vehicle AI product "NS AI LINK" will begin to be reflected in earnest. Namseong has completed preparations for sales by supplying an initial shipment, worth approximately 5 billion won (based on consumer prices), to the U.S. market.

NS AI LINK is an in-vehicle AI device that connects vehicles and mobile devices, allowing users to access AI-based services. Through this, Namseong aims to expand its business from traditional hardware to AI-based mobility solutions.

The company is leveraging its proprietary brands "Dual" and "Jensen" to supply a range of products in the U.S. Walmart automotive infotainment market, thereby securing a nationwide distribution network and brand competitiveness. Moving forward, Namseong plans to further enhance its brand recognition via Walmart before expanding its distribution channels to online platforms such as Amazon.

Additionally, Namseong intends to roll out its "AI Gateway Control" business, applying mobile communication sensors to major North American in-vehicle products and connecting individual devices to AI services. Through this, the company aims to expand its business structure towards AI device and platform-oriented solutions.

A Namseong official commented, "The expansion of high value-added On-Dash product sales to Walmart has driven both sales growth and improved profitability," adding, "In the second half of this year, as sales of existing products increase and NS AI LINK revenues start to be reflected in earnest, we expect this growth trend to continue."

The significance of this second quarter performance is that Namseong achieved both external growth and improved profitability through expanded sales of high value-added products for Walmart and the launch of new AI products, raising expectations for continued growth in the second half of the year.

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