Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩20,750, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 15x in the Software industry in South Korea. Total returns to shareholders of 61% over the past three years. New Risk • Feb 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.9% average weekly change). Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to ₩24,800, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 13x in the Software industry in South Korea. Total returns to shareholders of 90% over the past three years. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to ₩19,400, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 15x in the Software industry in South Korea. Total returns to shareholders of 47% over the past three years. Anuncio • Sep 11
Hecto Innovation Co., Ltd. (KOSDAQ:A214180) announces an Equity Buyback for KRW 8,000 million worth of its shares. Hecto Innovation Co., Ltd. (KOSDAQ:A214180) announces a share repurchase program. Under the program, the company will repurchase up to KRW 8,000 million worth of its shares pursuant to a contract with Yuanta Securities Korea Co., Ltd. The purpose of the program is to enhance shareholder value. The program will expire on March 11, 2026. As of September 10, 2025, the company had 515,182 shares in treasury within scope available for dividend or through other repurchase. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩18,110, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 16x in the Software industry in South Korea. Total returns to shareholders of 37% over the past three years. Anuncio • Sep 04
Hecto Innovation Co., Ltd. (KOSDAQ:A214180) agreed to acquire 47.15% stake in Hexlant Inc. for KRW 9.3 billion. Hecto Innovation Co., Ltd. (KOSDAQ:A214180) agreed to acquire 47.15% stake in Hexlant Inc. for KRW 9.3 billion on September 3, 2025. A cash consideration of KRW 9.29 billion will be paid by Hecto Innovation Co., Ltd. As part of consideration, KRW 9.29 billion is paid towards common equity of Hexlant Inc.
For the period ending December 31, 2024, Hexlant Inc. reported total revenue of KRW 1.56 billion and net loss of KRW 806 million. As of December 31, 2024, Hexlant Inc. reported total assets of KRW 8.76 billion and total common equity of KRW 8.49 billion.
The expected completion of the transaction is September 12, 2025. New Risk • Aug 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 7.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.8% average weekly change). Anuncio • Jul 03
Hecto Innovation Co., Ltd. (KOSDAQ:A214180) announces an Equity Buyback for KRW 8,000 million worth of its shares. Hecto Innovation Co., Ltd. (KOSDAQ:A214180) announces a share repurchase program. Under the program, the company will repurchase up to KRW 8,000 million worth of its shares pursuant to a contract with Yuanta Securities Korea Co., Ltd. The purpose of the program is to improve shareholder value and to stabilize stock price. The program will expire on July 1, 2025. As of July 2, 2025, the company had no shares in treasury within scope available for dividend or through other repurchase. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩15,300, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 13x in the Software industry in South Korea. Total returns to shareholders of 9.8% over the past three years. Major Estimate Revision • May 10
Consensus EPS estimates increase by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from ₩357.6m to ₩366.5m. EPS estimate increased from ₩2,117 to ₩2,618 per share. Net income forecast to grow 23% next year vs 63% growth forecast for Software industry in South Korea. Consensus price target of ₩17,000 unchanged from last update. Share price rose 2.8% to ₩12,390 over the past week. New Risk • Mar 31
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩146.1b (US$99.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₩146.1b market cap, or US$99.2m). Anuncio • Mar 13
Hecto Innovation Co., Ltd., Annual General Meeting, Mar 27, 2025 Hecto Innovation Co., Ltd., Annual General Meeting, Mar 27, 2025, at 09:01 Tokyo Standard Time. Location: conference room, 142-4, seoun-ro, seocho-gu, seoul South Korea New Risk • Mar 05
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 6.6% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. New Risk • Feb 03
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩145.9b (US$99.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₩145.9b market cap, or US$99.5m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩420 per share at 3.0% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 12 April 2024. Payout ratio is a comfortable 19% but the company is paying out more than the cash it is generating. Trailing yield: 3.0%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.6%). Major Estimate Revision • Nov 11
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from ₩2,217 to ₩1,889 per share. Revenue forecast steady at ₩292.4m. Net income forecast to grow 4.4% next year vs 132% growth forecast for Software industry in South Korea. Consensus price target of ₩19,000 unchanged from last update. Share price rose 2.9% to ₩13,800 over the past week. Anuncio • Jun 29
Hecto Innovation Co., Ltd. (KOSDAQ:A214180) announces an Equity Buyback for KRW 5,000 million worth of its shares. Hecto Innovation Co., Ltd. (KOSDAQ:A214180) announces a share repurchase program. Under the program, the company will repurchase up to KRW 5,000 million worth of its shares pursuant to a contract with Shinhan Investment Corp. The purpose of the program is to improve shareholder value and to stabilize stock price. The program will expire on December 27, 2023. As of June 27, 2023, the company had 510,321 shares in treasury within scope available for dividend and had no shares in treasury through other repurchase. Upcoming Dividend • Dec 21
Upcoming dividend of ₩390 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 11 April 2023. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (1.8%). Price Target Changed • Nov 16
Price target decreased to ₩19,000 Down from ₩22,000, the current price target is provided by 1 analyst. New target price is 41% above last closing price of ₩13,450. Stock is down 35% over the past year. The company is forecast to post earnings per share of ₩1,944 for next year compared to ₩1,825 last year. Anuncio • Jul 26
Hecto Innovation Co., Ltd. (KOSDAQ:A214180) announces an Equity Buyback for KRW 5,000 million worth of its shares. Hecto Innovation Co., Ltd. (KOSDAQ:A214180) announces a share repurchase program. Under the program, the company will repurchase up to KRW 5,000 million worth of its shares pursuant to a contract with Shinhan Investment Corp. The purpose of the program is to improve shareholder value and to stabilize stock price. The program will expire on January 24, 2023. As of July 24, 2022, the company had 160,181 shares in treasury within scope available for dividend and had no shares in treasury through other repurchase. Major Estimate Revision • May 18
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from ₩249.2m to ₩268.7m. EPS estimate fell from ₩2,290 to ₩1,927 per share. Net income forecast to grow 21% next year vs 26% growth forecast for Software industry in South Korea. Consensus price target of ₩29,000 unchanged from last update. Share price fell 5.9% to ₩16,600 over the past week. Price Target Changed • Apr 27
Price target increased to ₩29,000 Up from ₩23,000, the current price target is provided by 1 analyst. New target price is 60% above last closing price of ₩18,100. Stock is up 0.6% over the past year. The company is forecast to post earnings per share of ₩2,290 for next year compared to ₩1,825 last year. Upcoming Dividend • Dec 22
Upcoming dividend of ₩390 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 14 April 2022. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.0%). Price Target Changed • Aug 19
Price target increased to ₩29,000 Up from ₩23,000, the current price target is provided by 1 analyst. New target price is 30% above last closing price of ₩22,250. Stock is up 69% over the past year. Major Estimate Revision • May 19
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 EPS estimate fell from ₩2,080 to ₩1,856 per share. Revenue forecast steady at ₩210.0m. Net income forecast to grow 24% next year vs 35% growth forecast for Software industry in South Korea. Consensus price target of ₩23,000 unchanged from last update. Share price rose 3.4% to ₩18,100 over the past week. Is New 90 Day High Low • Mar 10
New 90-day low: ₩16,600 The company is down 2.0% from its price of ₩17,000 on 10 December 2020. The South Korean market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 4.0% over the same period. Is New 90 Day High Low • Jan 27
New 90-day high: ₩19,500 The company is up 30% from its price of ₩15,050 on 29 October 2020. The South Korean market is up 32% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is up 14% over the same period. Is New 90 Day High Low • Jan 12
New 90-day high: ₩18,000 The company is up 11% from its price of ₩16,200 on 14 October 2020. The South Korean market is up 28% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is up 8.0% over the same period. Is New 90 Day High Low • Dec 28
New 90-day high: ₩17,700 The company is up 13% from its price of ₩15,650 on 29 September 2020. The South Korean market is up 20% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is up 5.0% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩340 Per Share Will be paid on the 20th of April to those who are registered shareholders by the 29th of December. The trailing yield of 1.4% is below the top quartile of South Korean dividend payers (2.6%), but it is higher than industry peers (0.8%). Is New 90 Day High Low • Nov 24
New 90-day high: ₩16,900 The company is up 17% from its price of ₩14,400 on 27 August 2020. The South Korean market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 9.0% over the same period. Reported Earnings • Nov 18
Third quarter 2020 earnings released: EPS ₩376 The company reported a mediocre third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: ₩45.7b (up 45% from 3Q 2019). Net income: ₩4.64b (down 8.9% from 3Q 2019). Profit margin: 10% (down from 16% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Oct 13
New 90-day high: ₩16,350 The company is up 17% from its price of ₩14,000 on 15 July 2020. The South Korean market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 11% over the same period.