KOSDAQIT & Software236200

Suprema

₩55,800▼ 3.13%2026-10-02 close

Market Cap

₩382.2B

Turnover

₩1B

Volume

20,000 shares

Shares out.

PER

6.9×

PBR

1.2×

EPS

₩7,543

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

High Growth Meets a Shareholder-Return Turning Point

Suprema has posted five consecutive years of record revenue on its integrated security systems and biometric solutions businesses, while simultaneously moving through a shareholder-return policy shift that breaks a decade-long no-dividend practice.

1
2025 consolidated revenue reached KRW 137.3 billion and operating profit KRW 32.7 billion, up 26.8% and 40.6% year over year respectively, marking record annual results.
2
The company carried out its first-ever treasury share retirement in January 2026, ten years after listing, and announced a minimum annual dividend of KRW 400 per share plus a total shareholder return ratio target of 40% or higher for 2026-2028.
3
Data-center-related revenue grew from KRW 2.5 billion in 2024 to KRW 3.1 billion in 2025, and reached KRW 2.6 billion in just the first quarter of 2026, emerging as a new growth axis.
4
Second-quarter 2026 revenue of KRW 40.3 billion (+24.0% YoY) and operating profit of KRW 10.2 billion (+34.2% YoY) beat Shinhan Investment Corp's estimates.
5
A high revenue exposure to the United States leaves the company sensitive to tariff and currency swings, while a governance controversy surrounding parent holding company Suprema HQ remains a latent risk.

Business structure

Founded in 2000 and built on fingerprint recognition technology, Suprema was re-established as a separate listed entity in 2015 through the spin-off of Suprema HQ, and today operates as a biometrics and security specialist.

In the 2025 consolidated results, revenue mix by segment was 78.5% integrated security systems, 10.5% biometric solutions, and 11.0% other, with platform sales combining access control, time-and-attendance, and video security forming the core business.

The biometric solutions segment consists of the BioSign fingerprint algorithm supplied for Samsung Electronics' Galaxy smartphone series and biometric modules (SFM) used in safes, door locks, and mobile banking, and in 2026 the company continues to supply mobile fingerprint solutions for the Galaxy S26 series.

Suprema already holds the number-two global share in biometric access-control security, ranks first in the Europe-Middle East-Africa (EMEA) region, and leads the domestic market, while being named to A&S Magazine's Global Security Top 50 for 15 consecutive years.

Roughly 81% of total revenue comes from exports, supported by a global network of 217 partners and seven overseas subsidiaries. The company reinvests 15-20% of annual revenue into R&D, with research personnel making up 40% of its workforce, underscoring a technology-driven business model.

It has recently expanded further into physical security by launching new products such as the integrated platform BioStar X and the cloud-native platform BioStar Air, which manage access control and video management (VMS) on a single screen.

Its customer base is concentrated in high-end markets where security reliability is paramount, such as data centers, government facilities, and state-owned energy companies, with the BioEntry W2 access terminal—developed for large data-center operators—serving as a flagship reference case.

Earnings trend

Quarterly revenue · Operating profit

₩32.5B₩7.6B25Q2₩30.3B₩6.5B25Q3₩45.6B₩13B25Q4₩31.1B₩5.4B26Q1₩40.3B₩10.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩89.4B₩17.9B2022₩94.6B₩16.7B2023₩108.2B₩23.3B2024₩137.3B₩32.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩32.5B	₩7.6B	23.3%
2025Q3	₩30.3B	₩6.5B	21.5%
2025Q4	₩45.6B	₩13B	28.4%
2026Q1	₩31.1B	₩5.4B	17.3%
2026Q2	₩40.3B	₩10.2B	25.2%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩89.4B	₩17.9B	₩17.9B	20.0%	9.8%	6.6%
2023	₩94.6B	₩16.7B	₩23B	17.6%	11.2%	7.0%
2024	₩108.2B	₩23.3B	₩32.5B	21.5%	13.7%	9.9%
2025	₩137.3B	₩32.7B	₩32.4B	23.8%	11.9%	10.6%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Suprema's consolidated revenue rose steadily over four years, from KRW 89.4 billion in 2022 to KRW 94.6 billion in 2023, KRW 108.2 billion in 2024, and KRW 137.3 billion in 2025.

The operating margin dipped temporarily to 17.6% in 2023 from 20.0% in 2022, before recovering to 21.5% in 2024 and 23.8% in 2025, a pattern attributable to a temporary rise in fees, R&D expenses, and payroll-related SG&A costs in 2023 followed by an operating-leverage effect from strong integrated security system sales thereafter.

Net profit attributable to owners climbed from KRW 17.9 billion in 2022 to KRW 23.0 billion in 2023 and KRW 32.5 billion in 2024, holding at a similarly high KRW 32.4 billion in 2025.

On a quarterly basis, second-quarter 2025 revenue of KRW 32.5 billion and operating profit of KRW 7.6 billion were accompanied by net profit attributable to owners of only KRW 0.7 billion, a gap explained by volatile non-operating income tied to currency movements.

By contrast, third-quarter 2025 revenue and operating profit actually fell to KRW 30.3 billion and KRW 6.5 billion, yet net profit attributable to owners jumped to KRW 10.6 billion, and the fourth quarter delivered the year's largest quarterly results with revenue of KRW 45.6 billion, operating profit of KRW 13.0 billion, and net profit of KRW 12.9 billion.

First-quarter 2026 revenue of KRW 31.1 billion and operating profit of KRW 5.4 billion slowed from the prior quarter, though net profit remained solid at KRW 10.0 billion, before rebounding in the second quarter to revenue of KRW 40.3 billion and operating profit of KRW 10.2 billion.

Shinhan Investment Corp stated that second-quarter 2026 revenue grew 24.0% and operating profit grew 34.2% year over year, with the operating margin improving by 1.9 percentage points to 25.2%, and attributed part of the strength to Middle East export volumes delayed in the first quarter by the Iran conflict being shipped normally in the second quarter, along with a rising share of facial-recognition products and increased enterprise-customer orders.

The same report noted second-quarter pretax profit of KRW 22.4 billion and net profit attributable to owners of KRW 18.9 billion, beating its own estimate by 46%, and explained that roughly KRW 170 billion in cash and short-term investments, mostly denominated in US dollars, generates foreign-exchange gains when the won depreciates against the dollar.

Net profit attributable to owners over the most recent four quarters (third quarter 2025 through second quarter 2026) totaled KRW 52.4 billion, a run rate that, annualized, exceeds the full-year 2025 net profit level.

Industry analysis

The access-control security systems market that Suprema operates in was estimated at roughly USD 3.8 billion in 2025, with an expected compound annual growth rate of around 7.72% going forward.

In biometric technology, authentication accuracy, speed, ease of use, and price competitiveness are the core competitive factors, and the facial-recognition product line carries an average selling price of about KRW 932,000, roughly twice that of the fingerprint product line at about KRW 447,000, meaning a rising facial-recognition mix has an outsized effect on revenue and profitability.

Amid tightening restrictions on Chinese-made security equipment in the United States and Europe over data-security and national-security concerns, some observers note that Suprema's strategy of focusing on high-end markets—where security reliability is the top priority, such as core facilities of global tech companies, data centers, state-owned energy firms, and government buildings—positions it to benefit from this shift.

At the same time, the company maintains competitiveness in emerging markets such as India, Southeast Asia, and Latin America, and recently strengthened its push into the Indian market by participating in an international security exhibition in Mumbai.

In terms of competitive positioning, ranking second globally, first in the EMEA region, and first domestically reflects a leading position, though a gap remains versus the absolute top global player, and the market structure involves both integration and competition with global security solution vendors such as Genetec, Software House, AMAG, and Brivo.

Growth in the data-center end market stands out in particular: data-center-related revenue rose from KRW 2.5 billion in 2024 to KRW 3.1 billion in 2025 (+24%), and reached KRW 2.6 billion in the first quarter of 2026 alone, equivalent to 84% of the prior full year's total.

The smartphone fingerprint algorithm business is tied to the sales trajectory of Samsung Electronics' Galaxy series, meaning the performance of flagship models directly affects results in that segment.

Outlook

The company is preparing to launch a new AI CCTV camera in the second half of 2026, which is expected to be combined with the BioStar X and BioStar Air integrated security platforms to strengthen its converged access-control and video-surveillance solutions.

Regarding data-center revenue, the company has said a positive atmosphere is forming around data-center-related bidding, while a brokerage report estimated that full-year 2026 data-center revenue could conservatively exceed KRW 7 billion.

On shareholder returns, the company retired 282,962 treasury shares (3.9% of shares outstanding) on January 28, 2026—its first such retirement in ten years since listing—amended its articles of incorporation at the February annual general meeting to allow quarterly dividends, and on April 21 announced a minimum annual dividend of KRW 400 per share and a total shareholder return ratio target of 40% or higher for 2026-2028, marking a shift away from a decade-long no-dividend policy.

Foreign ownership rose from 12% at the end of 2024 to 25% at the end of 2025 and remained at 25% as of April 2026, a trend that appears to reflect growing investor interest following the value-up disclosure.

In its August 6, 2026 report, Shinhan Investment Corp assessed that the won/dollar exchange rate in the third quarter was tracking higher than the second-quarter average, leaving room for a further upward revision to full-year net profit attributable to owners estimates.

In a January 2026 report, KB Securities projected full-year 2026 consolidated revenue of KRW 175.1 billion and operating profit of KRW 45.0 billion, expecting continued high growth, though this forecast predates the actual first- and second-quarter results and may differ from confirmed outcomes.

New business areas such as a service-robot-based residential complex collaboration with Hyundai Motor Group and Hyundai Engineering & Construction, and an AI facial-recognition search solution addressing domestic data security and sovereign-AI demand, are also cited as potential revenue diversification factors.

Valuation

PER

6.9×

PBR

1.2×

ROE

19.3%

EPS

₩7,543

BPS

₩42,568

Dividend per share

₩0

Suprema has steadily expanded revenue and operating profit in recent years, and net profit has likewise grown on a consistently profitable basis without any loss-making year.

However, because the company paid no dividends for a full decade after listing, its dividend-related metrics start from a lower base relative to peers that have been more active in shareholder returns, and how quickly the minimum-dividend and treasury-share-retirement policy launched in 2026 translates into actual payouts is flagged as the key variable that could change this picture.

The share price relative to net assets is being formed against a backdrop of steadily rising equity capital each year, making the relative pace of profit growth versus capital growth worth watching together.

Some brokerages have offered views suggesting the company's valuation looks attractive relative to industry peers, but such views represent each firm's individual judgment and can change with market conditions.

Ultimately, how well the three narrative threads of integrated security systems, data centers, and shareholder returns are backed by actual results and policy execution appears to be the key variable that will shape future market assessment.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

A Break from a Decade of No Dividends

In January 2026, ten years after listing, Suprema decided on its first treasury share retirement (282,962 shares, 3.9% of shares outstanding), and in April announced a minimum annual dividend of KRW 400 per share plus a total shareholder return ratio target of 40% or higher for 2026-2028.

At the February annual general meeting, it also amended its articles of incorporation to permit quarterly dividends. This marks a clear departure from a decade of near-zero shareholder returns since listing.

Expansion of High-Value Facial Recognition and Data-Center Channels

The facial-recognition product line carries an average selling price roughly twice that of the fingerprint line, meaning a rising facial-recognition mix can favorably affect both revenue and margins.

Data-center revenue grew from KRW 2.5 billion in 2024 to KRW 3.1 billion in 2025, and reached KRW 2.6 billion in just the first quarter of 2026, equal to 84% of the prior full year. A dedicated terminal developed for large data-center operators is being used as a reference in winning new orders.

A Second-Quarter Earnings Surprise

In its August 6, 2026 report, Shinhan Investment Corp stated that second-quarter revenue grew 24.0% and operating profit grew 34.2% year over year, with net profit attributable to owners beating its own estimate by 46%.

It explained that export volumes delayed by the Middle East conflict in the first quarter shipped normally in the second quarter, and foreign-exchange gains from dollar-denominated cash holdings contributed to the improvement.

Bear factors

Currency-Dependent Earnings Volatility

In the second quarter of 2025, despite revenue of KRW 32.5 billion and operating profit of KRW 7.6 billion, net profit attributable to owners was only KRW 0.7 billion, while in the third quarter, even as revenue and operating profit declined, net profit surged to KRW 10.6 billion.

Shinhan Investment Corp explained that roughly KRW 170 billion in cash and short-term investments, mostly denominated in dollars, causes non-operating income to swing significantly with won/dollar exchange rate movements.

US Revenue Concentration and Tariff Variables

As of the end of the third quarter of 2025, revenue by region was 27% from the United States, 21.6% from Europe, and 19.2% from Asia, showing heavy dependence on North America.

Concerns about profitability erosion arose as Trump administration tariffs took effect, but a favorable exchange-rate environment has offset this so far, according to available assessments. Should currency conditions reverse, the tariff burden could flow through directly to margins.

Lingering Parent-Company Governance Controversy

Controversy arose after parent holding company Suprema HQ decided to donate roughly 5% of its treasury shares to a newly formed public interest foundation, and Korea's Financial Supervisory Service issued three correction orders to Suprema HQ related to the matter.

The market views this controversy as having accelerated the shift in shareholder-return policy at operating company Suprema, but the governance risk at the holding-company level itself has not yet been resolved.

Risk factors

Currency and Financial Asset Risk

The company holds roughly KRW 170 billion in cash and short-term investments, most of which are dollar-denominated.

During periods when the won weakens against the dollar, foreign-exchange gains can boost net profit, but the same structure creates a two-way risk in which a reversal in the exchange rate could significantly hurt net profit through non-operating losses.

Regional Concentration and Trade Risk

A significant portion of revenue comes from overseas markets including the United States, with exports accounting for roughly 81% of total revenue.

Recent quarterly results have confirmed that performance can be affected by external variables such as changes in US tariff policy or export volume delays caused by geopolitical conflict in the Middle East.

Governance and Affiliate Risk

Parent holding company Suprema HQ's decision to donate treasury shares without consideration, and the resulting correction orders from Korea's Financial Supervisory Service, illustrate governance risk at the group level.

Because operating company Suprema's shareholder-return policy appears in part to be a response to this controversy, how the holding-company issue unfolds could indirectly affect market confidence in the operating company as well.

What to watch next

Around September 30, 2026
It is worth checking whether the quarterly dividend enabled by the articles amendment is actually implemented for the third-quarter record date, and if so, the size of the first such distribution.
Mid-November 2026 (around the third-quarter report filing)
This is a point to check whether third-quarter results show data-center revenue continuing on a trajectory consistent with the roughly KRW 7 billion-plus annual level being watched, and whether the won/dollar exchange-rate effect persists.
During the second half of 2026
The actual launch timing of the previously announced new AI CCTV camera, its initial market reception, and progress on integration with the existing security platform should be confirmed.
Early 2027 (at the FY2026 results announcement)
It should be confirmed whether the minimum annual dividend of KRW 400 per share and the total shareholder return ratio target of 40% or higher, set as goals for 2026-2028, are actually executed for fiscal year 2026 and whether the executed amount aligns with the stated targets.

Overall view

Suprema has been a company whose integrated-security-system-centered business grew steadily and stably from 2022 through 2025, with both revenue and operating profit expanding consistently.

The high average selling price of facial-recognition products and the expansion of data-center revenue are cited as potential drivers of further profitability improvement, and second-quarter 2026 results exceeded market expectations as favorable exchange-rate effects coincided with the normalization of Middle East export volumes delayed earlier in the year.

At the same time, the first-ever treasury share retirement carried out ten years after listing, together with the minimum-dividend and total-shareholder-return-ratio policy, represents a structural turning point away from the prior no-dividend stance, though the actual pace and scale of policy execution still needs to be confirmed.

On the other side of the ledger sit counterbalancing factors including the currency sensitivity of net profit stemming from a dollar-heavy asset base, tariff risk tied to concentrated US revenue exposure, and the governance controversy surrounding parent holding company Suprema HQ.

Going forward, the key points to watch will be whether third-quarter results confirm the persistence of the data-center and currency effects, how the new AI CCTV camera is received in the market during the second half, and whether the shareholder-return policy is actually executed at the fiscal-year 2026 results stage.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.