[E-Daily Reporter Shin Ha-yeon ] On the 9th, the independent research firm Value Finder assessed that INNODEP INC.(303530)is expected to benefit from the government’s policy to establish an AI-specialized city (K-AI CITY) and advance smart city development. The firm noted that there is a strong possibility of improved earnings due to the expansion of AI-based urban infrastructure projects.

Lee Chung-heon, a researcher at Value Finder, stated, “In line with the government’s policies to build AI-specialized cities (K-AI CITY) and advance smart cities, the company is also pushing to expand its AI platform business.” He added, “Based on its existing integrated control platform and AI video analysis technology, the company has been supplying intelligent control solutions to local government integrated control centers and industrial sites, and is currently expanding its scope of application to include AI CITY, disaster safety, and industrial safety.”

He continued, “Given the company’s extensive experience in building public control centers and its track record with local governments, it is expected to maintain a strong competitive edge in future AI infrastructure projects led by the central and local governments.”

The company also cited its high market share in the public sector as a key strength. The analyst explained, “INNODEP INC., established in 2008 and listed on KOSDAQ in 2021, is a company specializing in AI-based video surveillance and integrated monitoring,” adding, “It has deployed video surveillance solutions in 127 local governments nationwide and, backed by 68 domestic and international patents, holds the top position in the domestic market for local government video surveillance solutions with a market share of approximately 55%.”

He added, “As the scope of AI-based intelligent monitoring expands, we expect to see concurrent growth in both the existing monitoring business and the AI video analytics platform business.”

The company has also secured a series of large-scale AI infrastructure projects this year. The analyst noted, “In the first half of the year, the company secured the Gwangju High-Tech District 3 Smart Service Implementation Project (approximately 6.4 billion won) and the Belize AI-Based 911 Emergency Response System Implementation Project (approximately 7.3 billion won) in quick succession,” adding, “Both projects are AI urban infrastructure initiatives utilizing AI video analysis and integrated monitoring platforms, aimed at establishing AI-based urban operation platforms.”

This expansion in contract wins is expected to lead to improved financial performance. The analyst explained, “The company is reducing fixed-cost burdens by streamlining its R&D and operations organizations, while also improving development and operational productivity through the advancement of AI technology,” adding, “AI technology is moving beyond the simple supply of solutions to generate recurring platform revenue and improve profitability.”

He also emphasized, “The order backlog has more than doubled, rising from 18.4 billion won in the fourth quarter of last year to 37.4 billion won in the first quarter of this year, fueling expectations for future earnings growth.”