KOSDAQIT & Software300120

LaonPeople

₩3,035 0.00%2026-10-02 close

Market Cap

₩29.4B

Turnover

₩77,320,355

Volume

30,000 shares

Shares out.

9.9M

PER

—

PBR

0.6×

EPS

-₩761

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

LaonPeople: Revenue Surges After TDG Consolidation, Profitability Still a Challenge

LaonPeople has seen its revenue base expand sharply after consolidating cloud subsidiary TDG, but annual operating losses have persisted while quarterly results swing between profit and loss.

1
2025 consolidated revenue reached KRW 223.8 billion, a slight increase year-on-year, but the operating loss of KRW 16.2 billion continued
2
Net income turned positive in Q4 2025 and Q2 2026, highlighting significant quarter-to-quarter volatility
3
The company completed a KRW 19.7 billion rights offering and convertible bond redemptions to restructure its finances, but the founder's stake was significantly diluted
4
The company operates a dual structure combining its core AI machine vision business (semiconductor and battery inspection) with cloud MSP and generative AI platform operations
5
Government policies on autonomous manufacturing and AI vouchers are cited as a favorable backdrop for business expansion

Business structure

LaonPeople, founded in 2010, is an AI vision solutions specialist whose core business is AI machine vision solutions used for defect inspection in semiconductor, secondary battery, automotive, and PCB manufacturing, leveraging machine vision cameras and image processing technology.

The company has also expanded into AI smart vision solutions covering golf sensors, AI dental solutions, AI traffic solutions, and AI smart farm solutions, alongside camera module inspection solutions for smartphone camera modules.

Subsidiary LaonRoad handles intelligent transport systems (ITS) and traffic signal control, while subsidiary LaonMedi covers digital dentistry and sleep apnea diagnostic AI software.

In 2024, the company acquired cloud MSP (Managed Service Provider) firm TDG, substantially expanding into AI platform and generative AI businesses, and cloud revenue began to be reflected in full in consolidated results starting that year.

TDG operates Microsoft license (LSP) and cloud solution partner (MSP) businesses, an area where synergy with LaonPeople's AI and platform technology is anticipated.

Together with TDG, the company launched the EZ-PLANET AI development platform in 2024, providing MLOps services spanning data collection through AI model deployment.

The company highlights its proprietary deep learning SDK enabling customer-specific optimization as a competitive edge, and in industrial AI inspection it has extended into areas difficult for rule-based machine vision, such as vehicle exterior inspection, PCB inspection, and textile inspection.

The company has also signed a memorandum of understanding with Thailand's Bueng Kan province for a generative-AI-based flood and disaster detection solution and is running a pilot project there as part of overseas market development.

Earnings trend

Quarterly revenue · Operating profit

₩64B-₩4.5B25Q2₩19.9B-₩6.2B25Q3₩95B₩2.4B25Q4₩39.9B-₩2.7B26Q1₩64.1B-₩500M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩26.5B₩2.4B2022₩11.2B-₩11.1B2023₩220.2B-₩16.2B2024₩223.8B-₩16.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩64B	-₩4.5B	−7.1%
2025Q3	₩19.9B	-₩6.2B	−31.3%
2025Q4	₩95B	₩2.4B	2.5%
2026Q1	₩39.9B	-₩2.7B	−6.8%
2026Q2	₩64.1B	-₩500M	−0.8%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩26.5B	₩2.4B	-₩400M	9.0%	−0.8%	60.8%
2023	₩11.2B	-₩11.1B	-₩8.2B	−99.0%	−17.8%	67.4%
2024	₩220.2B	-₩16.2B	-₩12.3B	−7.4%	−40.4%	245.6%
2025	₩223.8B	-₩16.2B	-₩17.3B	−7.2%	−53.0%	345.8%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

LaonPeople's annual results changed fundamentally after the TDG acquisition.

The company, which posted KRW 26.5 billion in revenue and KRW 2.4 billion in operating profit (a 9.0% operating margin) in 2022, saw revenue collapse to KRW 11.2 billion in 2023 with an operating loss of KRW 11.1 billion, before revenue jumped to KRW 220.2 billion in 2024 on the TDG consolidation effect, though the operating loss of KRW 16.2 billion persisted.

Consolidated revenue in 2025 rose slightly year-on-year to KRW 223.8 billion, while the operating loss remained at a similar KRW 16.2 billion, and the net loss attributable to owners widened to KRW 17.3 billion from KRW 12.3 billion in 2024.

Quarterly patterns show substantial volatility: Q2 2025 revenue was KRW 64.0 billion with an operating loss of KRW 4.5 billion, Q3 2025 revenue fell to KRW 19.9 billion with the operating loss widening to KRW 6.2 billion, but Q4 2025 revenue surged to KRW 95.0 billion, delivering an operating profit of KRW 2.4 billion and net income attributable to owners of KRW 1.3 billion, marking a quarterly swing to profit.

In 2026, Q1 revenue was KRW 39.9 billion with an operating loss of KRW 2.7 billion, before Q2 revenue reached KRW 64.1 billion with the operating loss narrowed to about KRW 0.5 billion and net income attributable to owners turning positive at KRW 0.5 billion.

This quarterly revenue variability appears largely driven by the timing of contract recognition in the cloud and platform businesses, and on an annual basis the company has yet to reach a clearly stabilized profit phase.

On the cash flow side, operating cash flow turned negative at KRW 10.6 billion in 2025, deteriorating again from a slightly positive KRW 0.38 billion in 2024.

Industry analysis

The AI machine vision industry is directly linked to demand for automated quality inspection across manufacturing end-markets including semiconductors, secondary batteries, automobiles, and displays.

The government is pursuing a policy to expand autonomous manufacturing model factories, investing more than KRW 1 trillion over five years in 'leading model' factories where AI machine vision is core to key industries such as semiconductors and secondary batteries, alongside Smart Manufacturing Innovation 3.0, which supports equipment adoption costs to raise AI adoption among SMEs from about 1% currently to a target of 10%.

In addition, the AI voucher support program provides vouchers of up to KRW 200-300 million to demand-side companies, lowering the burden for adopting AI machine vision solutions from suppliers such as LaonPeople.

In the cloud MSP and generative AI platform market, related revenue has been expanding as domestic companies accelerate cloud migration and AI adoption, and LaonPeople is a relative latecomer that entered this market in earnest through the TDG acquisition.

In the intelligent transport systems (ITS) segment, demand continues on the back of expanding municipal C-ITS projects and smart city policies, with subsidiary LaonRoad participating in government-led projects such as the Hwaseong smart intersection pilot.

On the competitive front, the industrial AI inspection segment includes numerous specialized machine vision firms alongside inspection equipment units affiliated with large conglomerates, making technological differentiation and reference track records key competitive factors.

Outlook

The company states its goal of pursuing both revenue growth and improved profitability by expanding cloud, AI vision, and generative AI platform revenue, presenting expansion of customized AI agent business and platform enhancement as future growth drivers.

Subsidiary LaonRoad was selected in September 2025 for a joint-effect SME technology innovation development project, winning a '360-degree AI intersection analysis and real-time traffic control using digital twin technology' project, which is being piloted and verified at intersections in Hwaseong and is scheduled to run through August 2027.

In Thailand, a pilot project for a generative-AI-based flood and disaster detection solution signed with Bueng Kan province is underway, and interest has grown around a potential transition to a full-scale contract after Thai government officials reportedly visited the company's Gwacheon headquarters to review feasibility.

Financially, the company completed a KRW 19.7 billion rights offering in early 2026 and redeemed its second and third convertible bond issues, finalizing balance-sheet stabilization work.

Expanding policy-driven demand through government initiatives such as the autonomous manufacturing alliance and AI voucher support program is cited as a favorable factor for the order environment in the industrial AI inspection segment.

However, specific full-year 2026 revenue or profit guidance from the company was not found in available disclosures, warranting confirmation through upcoming quarterly results.

Valuation

PER

—

PBR

0.6×

ROE

-20.7%

EPS

-₩761

BPS

₩5,590

Dividend per share

₩0

LaonPeople has recorded net losses even on a trailing four-quarter basis, making a conventional price-to-earnings ratio difficult to calculate.

Its price-to-book ratio appears to sit in a range where the stock has not yet commanded a full premium over net asset value, which can be linked to the fact that the company has not yet reached a stage of stable annual profit generation.

The company currently pays no dividend, making dividend-related metrics of limited relevance.

Looking across multiple years, after a one-off operating profit in 2022 the company posted consecutive annual operating losses from 2023 through 2025, though on a quarterly basis net income turned positive in Q4 2025 and Q2 2026, leaving the question of profit stabilization as a key variable for valuation going forward.

The large increase in total share count from the recent rights offering is a dilution factor for per-share metrics, which is worth monitoring alongside the pace of any profit recovery.

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 2026-09-05

Bull factors

Revenue Scale Expansion from Cloud/Platform Consolidation

Following the TDG acquisition, consolidated revenue expanded from KRW 11.2 billion in 2023 to KRW 220.2 billion in 2024 and KRW 223.8 billion in 2025.

Business diversification through the cloud MSP business and the EZ-PLANET generative AI platform is establishing itself as a growth driver alongside core AI machine vision revenue. There is precedent for quarterly profitability when contract recognition concentrates in specific periods such as Q4.

Policy-Favorable Industry Environment

The government is pursuing a policy of investing more than KRW 1 trillion over five years in autonomous manufacturing model factories for semiconductors and secondary batteries, while the AI voucher support program lowers the adoption burden for demand-side companies.

The Smart Manufacturing Innovation 3.0 goal of raising SME AI adoption is also a factor that could contribute to an expanding demand base.

Completed Balance-Sheet Stabilization

The KRW 19.7 billion rights offering completed in early 2026 was fully subscribed at a 106.52% subscription rate, enabling smooth redemption of the second and third convertible bond issues. Put-option risk was also resolved through an agreement with bondholders to defer early redemption requests.

Bear factors

Persistent Annual Operating Losses

Excluding the one-off operating profit in 2022, the company posted annual operating losses for three consecutive years from 2023 through 2025.

Even as revenue grew into the KRW 220 billion range in 2024-2025, the operating loss remained around KRW 16.2 billion without significant reduction, reflecting a structure in which cost burdens offset revenue growth.

High Quarter-to-Quarter Earnings Volatility

Revenue swung from just KRW 19.9 billion in Q3 2025 to KRW 95.0 billion in Q4 2025, illustrating substantial quarter-to-quarter variance.

This volatility appears tied to the timing of cloud and platform contract recognition, and whether profitability in a given quarter signals an annual trend shift requires further confirmation.

Significant Equity Dilution

During the KRW 19.7 billion rights offering, total issued shares increased sharply, and the combined stake of founder and CEO Lee Seok-jung and related parties fell 17.64 percentage points from 49.11% to 31.47%. Further dilution concerns cannot be ruled out if additional fundraising becomes necessary in the future.

Risk factors

Financial and Funding Risk

The company has repeatedly raised funds through convertible bond issuances and rights offerings in recent years. With operating cash flow turning negative at KRW 10.6 billion in 2025, there is a possibility that additional external financing may be needed to fund future business expansion or investment.

Business Diversification Execution Risk

The company simultaneously operates numerous business areas and subsidiaries spanning AI machine vision, cloud MSP, medical AI, and traffic AI, creating significant complexity in resource allocation and integrated management.

The uncertain timing of monetization for new businesses, such as the generative AI platform and Thailand operations, should also be considered.

Revenue Seasonality and Concentration Risk

Very large quarterly revenue swings mean results can vary significantly depending on whether contracts are recognized in a given quarter. If cloud and platform contract renewals or orders concentrate in specific periods, uncertainty in annual earnings forecasting could increase.

What to watch next

Mid-November 2026
The Q3 2026 quarterly report is expected to be filed around this time; it will be worth checking whether the seasonal revenue and operating profit pattern continues and whether the Q3-specific revenue trough recurs.
Progressively through August 2027
The phased progress and outcomes of the Hwaseong '360-degree AI intersection analysis' pilot project involving subsidiary LaonRoad should be monitored to see whether it translates into expanded future orders.
To be confirmed via future disclosures/IR
Whether the Thailand Bueng Kan province flood/disaster detection pilot project transitions into a full-scale contract has not yet been confirmed and requires further verification through disclosures or IR materials.
At future quarterly earnings releases
Whether the narrowing operating loss trend seen in Q1-Q2 2026 continues and whether net income remains positive will be key indicators for gauging annual profit-and-loss improvement.

Overall view

LaonPeople has established itself as an AI vision and cloud convergence company with a substantially expanded revenue base following the TDG acquisition, but on an annual basis it has not yet reached a stage of stable profit generation, having posted operating losses for three consecutive years from 2023 through 2025.

Quarterly signs of improvement emerged, with net income turning positive in Q4 2025 and Q2 2026, but large volatility such as the Q3 revenue trough also appeared, warranting caution in judging any trend.

Financially, the company resolved near-term funding risk through a KRW 19.7 billion rights offering and convertible bond redemptions, though this process involved a significant governance change with a sharp reduction in the founder's ownership stake.

Government policies on autonomous manufacturing and AI vouchers, along with growth in the cloud and generative AI markets, are cited as a favorable backdrop for business expansion, though specific annual guidance from the company was not found in public disclosures.

Q3 results and progress on new projects in Hwaseong and Thailand will likely be important variables in assessing the durability of any earnings improvement going forward.

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.