[E-Daily Reporter Hyera Lee ] INNODEP INC.(303530)has hit its daily price limit early in the trading session.
According to MP Doctor on the 9th, as of 9:11 a.m. that day, INNODEP INC. was trading at 3,590 won, up 29.84% from the previous trading day.
This comes amid analysis suggesting the company is expected to benefit from the government’s initiative to build an artificial intelligence (AI)-specialized city (K-AI CITY).
In a report analyzing INNODEP INC., the independent research firm ValueFinder assessed that there is a valid possibility of improved earnings due to the expansion of AI-based urban infrastructure projects.
Lee Chung-heon, a researcher at Value Finder, stated, “The company is expanding its AI platform business in line with the government’s policies to build AI-specialized cities and advance smart cities,” adding, “Based on its existing integrated control platform and AI video analysis technology, it 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 particularly noted the rapid growth in order intake since the start of this year. “In the first half of the year, the company secured back-to-back contracts for the smart service construction project in Gwangju’s High-Tech District 3 (approximately 6.4 billion won) and the AI-based 911 emergency response system project in Belize (approximately 7.3 billion won),” Lee said.
This expansion in orders is expected to lead to improved financial performance. The analyst elaborated, “AI technology is moving beyond the simple supply of solutions to generate recurring platform revenue and improve profitability,” adding, “The order backlog more than doubled 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.”