[Edaily Reporter Shin Ha-yeon ] On the 19th, independent research firm ValueFinder assessed that UANGEL(072130)is expected to benefit from U.S.-led 6G technology cooperation and the domestic Pre-6G demonstration roadmap, as profitability begins to improve in earnest due to growth in the global data eSIM business. The firm did not provide an investment opinion or a target price.

Ji-hoo, a senior researcher at Valuefinder, stated “UANGEL is a company that has been developing and supplying mobile communication solutions for over 20 years, and we understand that it is carrying out numerous government-funded projects with the Electronics and Telecommunications Research Institute (ETRI) in line with the government’s Pre-6G demonstration roadmap,” he said. “If U.S.-led technology cooperation and domestic 6G infrastructure investment expand in the future, the company is expected to benefit from these developments based on the technological capabilities and track record it has secured through its existing 5G business.”

Founded in 1999 and listed on the KOSPI market in 2003, UANGEL is a company specializing in 5G mobile communication network solutions and eSIMs. As of the first half of this year, Global Data accounted for the largest share of revenue at 49.9%, followed by Smart Learning at 21.8%, Core Network at 16.7%, and Service Business at 11.6%. The share of GlobalData revenue has expanded rapidly, rising from 14.1% in 2023 to 40.2% last year and 49.9% in the first half of this year.

Second-quarter revenue totaled 15.2 billion won, a 14.3% decrease from the previous quarter, but operating profit rose 512% to 1.2 billion won. Although revenue declined slightly compared to the first quarter due to adjustments in product performance, this was driven by an improved product mix resulting from a reduced share of high-cost-of-sales products and an expansion in revenue from the services segment.

Analyst Ji explained, “The product mix improved as the sales share of high-cost-ratio products decreased and revenue from the services segment expanded,” adding, “We assess that profitability also increased significantly due to the resulting operating leverage effect.” He further predicted, “We expect the improvement in the product mix to continue in the second half of the year, driven by expanded revenue from new businesses and growth in the services segment.”

In particular, he highlighted the growth of the “Rokebi” eSIM business. The analysis indicates that the global data eSIM business has completed its marketing phase for initial market entry and began generating full-scale operating leverage effects starting in the first half of this year.

In fact, the operating profit margin, which stood at 1.1% in the first quarter, improved by approximately 11.4 percentage points to 12.5% in the second quarter. Analyst Ji stated, “We expect further improvements in profitability as subscriber numbers expand and transaction volumes increase.”

The outlook for the Chonbang market is also considered favorable. Despite rising jet fuel prices due to geopolitical risks and a strong exchange rate, the number of South Korean outbound travelers reached 14.96 million in the first half of this year, approaching pre-pandemic levels. The report explains that if geopolitical risks ease and oil prices stabilize going forward, the eSIM market can be expected to grow in scale alongside the recovery in demand for overseas travel.

6G was also cited as a medium- to long-term growth driver. As the U.S. government has launched a 6G mobile communications technology alliance with 25 allied nations, including South Korea, to compete with China for leadership in next-generation communications technology, UANGEL is currently carrying out government-funded projects related to Pre-6G in South Korea.

Researcher Ji emphasized, “With the U.S. government launching a 6G mobile communications technology alliance with 25 allied nations, including South Korea, the construction of next-generation communications infrastructure is gaining momentum,” adding, “If U.S.-led technological cooperation and domestic investment in 6G infrastructure expand in the future, the company is expected to benefit based on the technological capabilities and track record it has secured through its existing 5G business.”