[Click eStock] "RaonSecure Expands PQC and AI Security Businesses... Momentum for Second-Half Performance and Share Price"

Despite a decline in headline figures due to the sale of a subsidiary, RaonSecure continues to demonstrate growth in its core businesses. In particular, its White Hat consulting and blockchain service divisions have each recorded double-digit growth rates. Meanwhile, business expansions into post-quantum cryptography (PQC) and artificial intelligence (AI) security are expected to become key drivers for both performance and share price in the second half of the year.

According to Eugene Investment & Securities on August 27, RaonSecure posted consolidated sales of KRW 12.2 billion and an operating loss of KRW 700 million in the second quarter. While sales decreased by 12.4% year-on-year, the operating loss was in line with market expectations. Eugene Investment & Securities had originally projected KRW 14.5 billion in sales and an operating loss of KRW 800 million for the quarter.

Analysts note that, although topline sales have declined, RaonSecure’s actual business growth remains intact. This is because, following the sale of its entire 54% stake in subsidiary Inviznet at the end of last year, the company has excluded Inviznet from its consolidated results starting from the first quarter of this year. In the second quarter of last year, Inviznet recorded sales of KRW 2.5 billion and operating profit of KRW 60 million.

Jongseon Park, researcher at Eugene Investment & Securities, commented, “If Inviznet’s results are excluded, RaonSecure’s second-quarter sales actually increased by 5.6% compared to the previous year,” adding, “This is a positive outcome given that the topline reduction was solely due to the subsidiary sale.”

Growth in core businesses is also clear. Sales in the White Hat consulting segment surged by 37.3% year-on-year, achieving double-digit growth for the sixth consecutive quarter. Even excluding Inviznet, the blockchain services segment expanded by 15.2% compared to the same period last year.

The growth trend is expected to continue into the third quarter, excluding the effects of the divestiture. Eugene Investment & Securities estimates RaonSecure’s consolidated third-quarter revenue at KRW 15.7 billion and operating profit at KRW 600 million. This represents a 2.0% decline in revenue and a 61.3% decline in operating profit year-on-year. However, if the KRW 3.1 billion in revenue and KRW 220 million in operating profit from Inviznet, reflected in the third quarter of last year, are excluded, revenue is expected to increase by 17.4% compared to the previous year.

In the second half of the year, post-quantum cryptography is anticipated to emerge as a new pillar of growth. In July, RaonSecure secured a commercial reference in financial services by supplying PQC solutions to KDB Life Insurance, expanding its business scope beyond initial pilot projects in the healthcare sector. In the third quarter, the company is expected to further expand supply to NH NongHyup Property & Casualty Insurance. Additional adoption discussions are also underway with financial and public sector institutions.

Researcher Park predicted, “Driven by the market expansion following the implementation of the Quantum Technology Industry Act in November and growing demand for migration to new cryptographic systems, RaonSecure will begin full-scale expansion of its quantum security business.”

The company’s AI security business is also cited as a medium-to-long-term growth driver. RaonSecure is working to commercialize an autonomous AI-based security operations platform by integrating its authentication, access control, and White Hat security expertise with Upstage’s large language model (LLM). As the agentic AI security market—where AI detects and responds to security threats—continues to grow, this could become a new revenue stream for the company.

RaonSecure is also pushing into the physical AI sector. In May, the company signed a business agreement with the Korea Electronics Technology Institute to collaborate on security technology for physical AI environments such as robotics, manufacturing, and logistics. The aim is to establish the next-generation digital trust infrastructure that encompasses people, devices, and AI.

Researcher Park observed, “The White Hat consulting business has proven its world-class attack and defense security capabilities on the global stage, and the expansion of high-value-added security business leveraging AI will continue.”

There is also growing optimism regarding improved profitability. RaonSecure is streamlining its consolidated structure by selling off non-core subsidiaries while shifting towards a platform-based business. Eugene Investment & Securities believes this restructuring could provide share price momentum if it translates into improved financial performance.

The current stock price reflects an expected 2026 price-to-earnings ratio (PER) of 18.4 times. Researcher Park analyzed, “Given expectations for improved profitability stemming from subsidiary restructuring and the transition to a platform-based business, the share price may shift to an upward trend going forward.”

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