[Edaily Reporter Kwon Oh Seok ] HEUNGKUK METALTECH CO.,LTD. announced on the 4th that it is maintaining its “Buy” investment rating and target price of 95,000 won for S-1(012750).

Hwang Seong-jin, an analyst at HEUNGKUK METALTECH CO.,LTD., stated, “S-1’s second-quarter revenue stood at 723.1 billion won (down 1.3% year-over-year), and operating profit reached 64.4 billion won (up 4.5%), meeting market expectations. In particular, the company fully recovered the profit decline caused by a one-time provision for expenses related to changes in retirement benefit calculation standards in the first quarter and returned to normal performance.”
The second-quarter operating profit margin was 8.9%, exceeding the average annual level of 8%. He added, “Steady growth continued in the security and building management businesses, and despite delays in revenue recognition for the security system integration (SI) business, efforts to improve profitability were reflected, resulting in stable profit growth.”
First, revenue in the Security division remained stable at 353.2 billion won (+0.7%). Analyst Hwang emphasized, “The company is maintaining its strong performance trend based on the expansion of its portfolio centered on large clients and a steady net increase in physical security subscribers,” adding, “Going forward, we plan to continue growth accompanied by profitability through the advancement of AI-powered intelligent services and the expansion of our portfolio from security and video surveillance to fire and safety areas.”
Revenue in the Infrastructure segment recorded 366.1 billion won (-3.3%), showing a decline. He explained, “The main reason was sluggish growth in the security system integration (SI) business (63.6 billion won, -25.9%) due to delays in recognizing revenue from previously secured battery plant contracts,” adding, “We expect a gradual recovery starting in the second half of the year, as investments in semiconductors and data centers are expected to drive related projects, and bids for the Defense Ministry’s GOP (Frontline) scientific border surveillance system are also scheduled.”
Last year’s dividend per share was 3,200 won (+500 won, dividend payout ratio of 61%). In March, the company announced a plan to enhance corporate value, stating its intention to maintain a dividend payout ratio of 50–60% this year and to continue investing in mid- to long-term growth—including expanding its business scope with new AI- and robotics-based products and services, as well as securing new businesses and technologies. Analyst Hwang added, “We are focusing on the growth trend underpinned by a stable business structure.”