The latest regulatory direction announced by the Financial Authority is accelerating firms’ security investment, and it is expected to expand Jineuns’ opportunities for additional contracts. On the 28th, Korea Investment Securities predicted that expanded security inspections by financial regulators and harsher penalties for personal data leaks would become key growth drivers for the company.
Jineuns is expected to record sales of 57.1 billion won and operating profit of 11 billion won this year. Sales are projected to rise 18% from last year, with operating profit increasing by 57.1%. The annual operating margin is forecast at 19.3%, up 4.8 percentage points from last year’s 14.5%. In particular, the sale of new and advanced NAC solutions for public and large enterprises, as well as EDR sales, is expected to grow substantially.
The government has made strengthening financial security a structural growth factor. After ordering an external audit of the system on October 2nd, it announced that the inspection of major financial firms’ weaknesses will be expanded from once a year to at least twice a year. Also, under the Personal Data Protection Act amended last September, repeat violations could incur fines up to 10% of sales. With the introduction of preventive measures for investment, companies have greatly increased their security budgets.
Korea Investment Securities research analyst Hong Ye-rim said that “the expanded inspections and stronger liability for personal data leaks will broaden Jineuns’ opportunities for new contracts,” adding that “existing NAC customers are expected to add EDR and other products, and the overall sales of some products will rise.”
Jineuns appears poised to grow through its cloud subscription services and overseas expansion. As of the first half of the year, the number of cloud NAC customers had risen 26% from last year to 299 companies, while Middle East region sales also grew more than 50%. These projections show that tightening financial security regulations and a shift in firms’ perception of security investment are factors that expand Jineuns’ market share.