[Edaily Reporter Shin Ha-yeon ] On the 23rd, Shinhan Investment Securities assessed that VECT Co., Ltd. is pursuing expansion into commercial digital signage and new business areas, building on the sales foundation it has established in the government procurement and public sectors. The firm did not provide a specific investment recommendation or target price.

Park Hyun-woo, a senior analyst at Shinhan Investment Securities, stated, “As a company specializing in commercial and educational digital signage, it has diversified Chonbang markets such as education, XR, and entertainment,” adding, “We expect commercialization not only in the signage business but also in new growth areas that can be linked to its existing sales base in the procurement and public sectors.”

First-quarter performance was somewhat sluggish due to weakness in the education business. VECT Co., Ltd.’s first-quarter revenue stood at 15.7 billion won, a 23% decrease year-over-year, and operating profit turned to a loss of 700 million won. The education business underperformed as some budget execution was delayed due to factors such as the local election schedule.

However, the outlook is for a recovery starting in the second half of the year. Analyst Park explained, “We expect a recovery in the second half as budget execution normalizes and public procurement orders resume,” but added, “Average selling prices (ASPs) continue to decline due to intensifying competition among companies in the interactive whiteboard and teacher’s desk markets.”

Consequently, the company is moving to expand its share of the commercial digital signage market. Analysts note that the company recently secured exclusive domestic sales rights for LED display modules and finished products under the Chinese Skyworth brand and, building on this, is now fully launching its push into the next-generation commercial LED display market.

The expansion of new businesses was also highlighted as a key area of focus. Analyst Park stated, “Based on the nationwide public and private sales network and installation and maintenance capabilities accumulated in the procurement market, the company has signed memorandums of understanding (MOUs) in new business areas such as modular data centers and robotics,” adding, “Collaboration with various industries through this sales network is positive.”

In the medium to long term, he forecast that revenue contributions from new businesses will begin in earnest. “We expect revenue growth in 2027 through an expansion of the commercial segment’s share and the commercialization of new business areas,” he said, adding, “We are targeting over 200억 won in revenue from the exclusive domestic sales rights for a Chinese brand’s commercial LED displays.”

He continued, “Since last year, we have been continuously reviewing ways to diversify our business portfolio through mergers and acquisitions (M&A),” and added, “We need to assess the potential volatility in our performance resulting from government policies.”