[Edaily Reporter Shin Ha-yeon ] On the 7th, independent research firm Value Finder analyzed that #Inspien, Inc. is expected to benefit from SAP’s end-of-support for its legacy enterprise resource planning (ERP) system, ECC, and from stricter personal data protection regulations. In particular, the firm assessed that the company—which holds net financial assets exceeding its market capitalization—has the potential for a future revaluation, given its earnings turnaround and shareholder returns. No investment opinion or target price was provided.

Lee Chung-heon, CEO and researcher at Valuefinder, explained, “The company is an SAP consulting and security solutions developer established in 2009 and listed on the KOSDAQ market in 2024,” adding, “It has expanded its business scope to include system integration consulting, security solutions, and EDI (Electronic Data Interchange) SaaS, centered on SAP systems.”

Inspien, Inc. is the leading company in the domestic SAP EAI (Enterprise Application Integration) consulting market. In the SAP ERP encryption solution market, it held a market share of over 70% as of the first half of this year and has secured more than 230 clients. Revenue breakdown for the first half of this year was 32.9% from consulting, 39.9% from security solutions, 25.3% from services, and 1.9% from other sources.

ValueFinder identified the transition to SAP systems as a major growth opportunity for Inspien, Inc. SAP’s legacy ERP system, ECC, is scheduled to reach the end of general support in 2027. Consequently, as demand for S/4HANA migration among enterprises increases, existing security products will also need to be rebuilt or upgraded to align with the new system environment.

The analyst stated, “As the company possesses SAP-specific access log management and data encryption technologies, we believe it will have opportunities not only to secure product replacements and upgrades for existing customers but also to capture demand for new implementations.”

Stricter personal information protection regulations were also identified as a growth driver for the security solutions business. The amended Personal Information Protection Act, which takes effect on the 11th, raises the maximum penalty for repeated or serious violations from 3% to 10% of total revenue. Regulations mandating ISMS-P certification for major public and private personal information processors are also scheduled to take effect starting next July.

Inspien, Inc. develops and supplies its own solutions, including “BizInsider xCon” for managing personal information access logs, “EnDB” and “SecureDB” for database encryption, and “BizInsider PIM” for the segregated storage and destruction of personal information. The analyst explained, “The company’s product lineup directly addresses these regulations,” noting that it is equipped with the features necessary for regulatory compliance, such as access control, encryption, and data destruction.

The company also highlighted the rapid growth of its EDI business. Inspien, Inc.’s EDI solution revenue increased from approximately 900 million won in 2022 to 3 billion won last year, marking an average annual growth rate of 51.1% over the past three years. During the same period, its share of total revenue expanded from 6% to 15%. The cumulative renewal rate for its cloud EDI service, “Connect Service,” stands at 97%.

As of the second quarter of this year, the cumulative number of EDI SaaS customers reached 125, a significant increase from 46 in 2023. During the same period, the number of large enterprise customers rose from 6 to 30. In January, Inspien, Inc. completed a merger with B2B C&I, a company specializing in on-premises EDI, thereby establishing a portfolio that offers both cloud-based and on-premises solutions.

The company has also begun expanding overseas. Last July, it signed its first overseas local partnership agreement with Softlink Global, an Indian logistics IT company, and began supplying “ELinkPro,” an automated customs clearance solution. Softlink Global has a network of more than 5,000 logistics company clients across approximately 50 countries.

Research analyst Lee commented, “It appears the company has secured a more efficient local distribution channel than if it had sought out individual overseas companies directly,” adding, “We view it positively that the company has laid the groundwork to expand the reach of ‘ELinkPro’ by leveraging Softlink’s overseas customer network.”

Earnings are also on the mend. Inspien, Inc.’s revenue for the first half of this year reached 8.74 billion won, a 13.3% increase year-over-year, and operating profit turned to a surplus at 1.24 billion won. The operating profit margin stood at 14.2%. In particular, revenue from security solutions rose 33% to 3.48 billion won, while EDI revenue surged 170% to 2.22 billion won.

Cost burdens also decreased. While first-half revenue increased by approximately 1 billion won compared to the same period last year, operating expenses fell from 8.1 billion won to 7.5 billion won. Operating profit improved by 1.63 billion won year-over-year as outsourcing costs decreased by about 700 million won and stock-based compensation expenses fell by about 300 million won.

The analyst predicted, “Given that the company achieved double-digit revenue growth and returned to an operating profit even in 1H26, which is a relatively slow season, we expect annual earnings to improve as well.”

The analyst also highlighted the company’s substantial financial assets as a key investment point. As of the end of the first half of this year, Inspien, Inc.’s cash and cash equivalents, along with financial assets measured at fair value through profit or loss, totaled 39.38 billion won. This amounts to 114% of its market capitalization of approximately 34.5 billion won, based on the closing price on the 4th. Net financial assets, excluding borrowings of approximately 1 billion won, also stood at about 38.4 billion won, exceeding its market capitalization.

The company is also strengthening shareholder returns. Inspien, Inc. has set the following goals for the next three years: average annual revenue growth of at least 10%, continued improvement in operating profit margin, and stable dividends with a payout ratio of at least 25%. Last year’s year-end dividend was 100 won per share, representing a dividend payout ratio of 37.1%. The company also executed a trust agreement to repurchase 3 billion won worth of its own shares and currently holds 563,951 shares—5.56% of the total outstanding shares—directly.

The analyst noted, “With net financial assets exceeding market capitalization underpinning the company’s value, signs of a return to operating profitability in the first half of 2026 and a recovery in its core business are becoming evident,” adding, “If operating profit continues to improve and the dividend policy is consistently implemented, a revaluation of the stock price is expected as the undervaluation is resolved.”