S-1 (012750) Q3 2024 earnings summary

Executive summary

• Operates as a comprehensive security solutions provider, leading the Korean security and real estate service markets with advanced security systems and differentiated customer service.

• Main business segments: Security Services (physical and information security) and Infrastructure Services (real estate management, integrated security, and SI).

• Q3 2024 consolidated sales reached 2,041.2 billion KRW, with Security Services at 1,005.9 billion KRW and Infrastructure Services at 1,024.2 billion KRW.

• Revenue for 3Q'24 reached 682.7 billion KRW, up 6% year-over-year but down 2% sequentially.

• Net income for the quarter was 54.3 billion KRW, up 28% year-over-year and 20% sequentially.

Financial highlights

• Q3 2024 consolidated revenue: 2,041.2 billion KRW, down from 2,620.8 billion KRW in Q3 2023.

• Operating income: 161.4 billion KRW, down from 212.6 billion KRW year-over-year.

• Net income attributable to controlling interests: 138.4 billion KRW, down from 189.5 billion KRW year-over-year.

• Gross profit increased to 163.6 billion KRW, up 9% year-over-year and 5% sequentially, with gross margin improving to 24%.

• EBITDA reached 103.4 billion KRW, up 6% year-over-year and 7% sequentially.

Outlook and guidance

• Results are preliminary and unaudited; figures may change after external audit.

• Security service market expected to continue growing, driven by increased demand for unmanned and contactless solutions, AI, IoT, and cloud-based security.

• Real estate and integrated security services anticipate steady demand due to increased need for professional building management and smart solutions.

• Company aims to strengthen market leadership through ongoing R&D and new product launches in AI and cloud security.