Eugene Investment & Securities said on the 13th that Hecto Innovation's key business areas, including information services and Fintech, are expected to continue their growth trend. It maintained a "Buy" rating and raised the target price to 28,000 won from 21,000 won. Hecto Innovation's closing price in the previous trading day was 21,000 won.
Hecto Innovation is an IT-based information services corporations that provides services such as login authentication and personal information security.
Eugene Investment & Securities analyzed that Hecto Innovation set a new record for highest revenue for seven consecutive quarters.
Researcher Park Jong-seon at Eugene Investment & Securities said, "In the fourth quarter last year, on a consolidation basis, revenue rose 12.8% on-year to 98.8 billion won, and operating profit fell 25.4% to 10.4 billion won, with operating profit reflecting depreciation and investment losses from related corporations."
Park added, "What is positive in the fourth-quarter results is that all business institutional sector maintained growth and set a new quarterly record for revenue for six consecutive quarters," and explained, "The drivers of revenue growth are the IT information services, Fintech, and healthcare institutional sector."
Since its establishment in 2009, Hecto Innovation has set a new annual revenue record every year to date. Park said, "Last year's annual revenue and operating profit increased 17.6% and 2.7%, respectively, from a year earlier," and added, "Revenue growth at the headquarters and subsidiaries is continuing."
Eugene Investment & Securities analyzed that Hecto Innovation's first-quarter revenue this year will exceed 100 billion won. This is because, in addition to the launch of new services in the IT information services institutional sector, diversification of customer groups and increased information services revenue are expected to improve profitability.
Park said, "The Fintech business institutional sector is maintaining its growth in results thanks to a stable market position and unrivaled competitiveness, and the generation of overseas services revenue is also positive with the expansion of global merchants," adding, "The healthcare institutional sector is expected to see growth in results through an expanded product lineup and the launch of new brands."