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DEEP RESEARCH · INCAR FINANCIAL SERVICE

Incar Financial Service Q1 2025 Results Review

A note on per-person operating profit overtaking per-person SG&A, plus independent GA regulation risk

Written: 2025-05-16 · Q1 results/operating leverage review · Original Naver Blog post

You are responsible for your own investment decisions. This material is research and is not a recommendation to buy or sell.

0. Bottom line first

I think the key indicators for this company are the per-person metrics. In the data below, it is beautiful to see per-person operating profit move above per-person SG&A. In one phrase, this is operating leverage.

1. The Key Metric Is Per-Person Productivity

I wonder whether there are many Korean companies where per-person sales increase like this. The company is showing a phase where per-person operating profit becomes larger than per-person SG&A, and I see that as the core of operating leverage.

Interpretation: If costs do not rise at the same pace as sales, per-person operating profit can move above per-person SG&A and margins can improve meaningfully. For Incar Financial Service, this is the most important monitoring point.

Source image related to Incar Financial Service per-person metrics and operating leverage
Incar Financial Service Monitoring FormulaChecking whether per-person productivity exceeds the cost structure
Sales per personTrack annually
Operating profit per personCheck upward movement
SG&A per personWatch when it is surpassed
ResultOperating leverage
I plan to keep tracking sales per person on an annual basis.

2. Regulation Risk Is a Speed-Control Variable

However, there was a bill late last year that somewhat regulates independent GAs, so I will watch while considering that growth could slow somewhat.

Interpretation: Regardless of the bill, when I think about the business of creating customers for insurers, even if growth slows in the short term, its scalability still feels far from over.

Source image related to the independent GA regulation bill

3. Also Checking Expansion Plans

Core

Creating insurance customers

The essence of the scalability is that the business creates customers for insurance companies.

Risk

Independent GA regulation

The late-2024 regulation-related bill is a variable that could slow short-term growth.

Expansion

Finance and securities plan

The source notes that the CEO also has plans to expand into finance and securities.

The CEO also has plans to expand into finance and securities. Regardless of the regulation bill, I will keep checking how far the business scalability can extend.

Sources

Naver original