CyCraft Advances Toward Listing on the Taiwan Innovation Board, Targeting Multi-Billion AI Security Opportunity

Taiwan’s premier AI-native cybersecurity stock, CyCraft-KY (7823), is officially entering the Taiwan Innovation Board (TIB). In conjunction with our pre-listing underwriting, a competitive auction will be held from January 21 to 23. A total of 1,580 shares are up for auction with a floor price of NT$70.31 and a provisional underwriting price of NT$90. This presents a rare opportunity for investors to position themselves in Taiwan’s leading AI security company before its listing.

CyCraft is one of the few domestic security vendors possessing world-class R&D capabilities and global market visibility. We have been recognized seven times by top research institution Gartner and are the only Taiwanese vendor to pass the authoritative MITRE ATT&CK evaluations three times. 2025 is a critical turning point for the company. Driven by economies of scale, institutional investors expect a single-quarter turnaround to profitability in Q4 2025, officially launching a harvest period of profit growth.

Adopting a subscription-based (SaaS) model, CyCraft demonstrates an operational constitution and profitability DNA comparable to international giants like CrowdStrike and Palantir. Subscription revenue accounts for 90% of the total, with customer retention consistently exceeding 90%, showcasing high stickiness and a robust recurring revenue structure. By the end of Q3 2025, deferred revenue grew 42% YoY, indicating continuous growth in revenue collected in cash but not yet recognized. This enhances operational visibility and cash flow extensibility. Financially, the company is solid with NT$519 million cash on hand and zero debt, boasting capital discipline and cash flow efficiency that outshines peers.

Leveraging deep technical DNA and industry experiences, CyCraft has successfully penetrated the core security needs of the semiconductor supply chain. As a key promoter of the SEMI E187 cybersecurity standard, our solutions are adopted by supply chain leaders for routine external exposure inspections, assuring our products are the preferred choice for semiconductor equipment and supply chain manufacturers. Driven by these clients, CyCraft has expanded to over 1,000 supply chain vendors, creating a "top-down adoption" effect that establishes a hard-to-replicate technical moat and market share advantage.

Facing new security demands driven by rapid AI evolution, CyCraft is aggressively deploying three major growth engines targeting the high-growth security market in 2026: security resilience, AI model safety, and national defense applications. The goal is to expand recurring revenue and long-term growth momentum.

Concerning security resilience, CyCraft’s XCockpit platform has deployed over 600,000 AI sensors. Through real-time threat inspection and autonomous response mechanisms, XCockpit helps enterprises strengthen security resilience while generating stable and predictable recurring revenue. International research estimates the global Managed Detection and Response (MDR) market will exceed US$180 billion in 2025, indicating clear market growth momentum.

Addressing security risks derived from Generative AI and enterprise adoption of LLMs, CyCraft is introducing XecGuard, an AI Guardrail solution. Focusing on LLM vulnerability protection and safety mechanisms, XecGuard helps enterprises mitigate key risks like model abuse and data leakage. Slated for official launch in H1 2026, XecGuard targets the emerging multi-billion dollar global market for model safety.

As for the national defense applications, CyCraft is entering the counter-drone market with highly scarce "digital jamming" technology. Our solution, XecDefend, is gradually expanding into national security and public safety applications. This extends cybersecurity technology into defense and public governance levels, further broadening the scope for long-term growth.

Analysts note that international security leaders with revenue growth rates exceeding 20% command an average P/E ratio of 106x. CyCraft’s full-year revenue growth of 23% in 2025 places us within this Tier 1 international growth threshold. Furthermore, the company is actively expanding global channels, having allied with over 10 medium-to-large IT service providers in Japan. Domestically, we collaborate with strategic partners like CHT Security (under Chunghwa Telecom) and HONLYNN (under ABICO AVY Group), expecting channel synergies to amplify future growth momentum.

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