The author is an analyst at NH Investment Securities. His contact information is kyeongkeun.kang@nhqv.com — Ed.
Truen is an AI-based video surveillance solution company with a business portfolio consisting of edge AI cameras, IP cameras, video streaming solutions, and IoT equipment. As the largest share of the public sector video surveillance market, the company stands to benefit from the increased use of AI cameras in the public sector.
video surveillance solution player
Founded in 2005, Truen is a video surveillance solutions company with a business portfolio consisting of edge AI cameras, IP cameras, video streaming solutions and IoT devices. The company offers AI-based video surveillance solutions, including object detection and tracking, and behavioral analysis.
Edge AI Camera is capable of self-learning/thinking/evaluation based on AI computing solutions. The Edge AI Camera is also economically advantageous because it does not require the installation of a server. It works in a variety of configurations, such as standalone or wearable devices, and also offers scalability. The demand for edge AI cameras is increasing in various fields such as smart city development, cooperative intelligent transportation systems (C-ITS), IoT devices, and drones.
Positioned to benefit from rising demand for AI cameras
As the number one player in the domestic video surveillance market with a 40% market share, Truen is well positioned to benefit from the growing demand for AI cameras in the public sector. Currently, the diffusion rate of AI cameras for video surveillance and security in local governments is about 20%. The Ministry of Home Affairs plans to allocate a budget of 800 billion won to introduce AI cameras to all public institutions by 2027.
Backed by strong sales of high-end products, Truen boasts healthier margins than its competitors. Edge AI camera sales in the IP camera segment rose from 3.9% in 2020 to 58.5% in 2022. Along with this, the 2022 OPM reached 23.2% against his industry average of 15.0%. In 2023, we forecast sales of 44.6 billion won (+14.8% year-on-year) and operating profit of 11.2 billion won (+24.8% year-on-year, operating margin of 25.2%). The company’s IPO price range equates to 11.0-13.2x 2023 EP/E. Post-IPO free float is estimated at 38.1%.
