Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩26,000, the stock trades at a trailing P/E ratio of 78.8x. Average forward P/E is 15x in the Machinery industry in South Korea. Total returns to shareholders of 584% over the past three years. Annonce • May 14
Neo Technical System Co., Ltd. announced that it expects to receive KRW 18.005738 billion in funding from Weiss Asset Management LP Neo Technical System Co., Ltd. announced a private placement of 662,000 Convertible Preferred Shares of the company at a price per share of KRW 27,199 for gross proceeds of KRW 18,005,738,000 on May 12, 2026. The transaction involves participation from new investor Brookdale International Partners, L.P. for 231,700 Preferred shares and Brookdale Global Opportunity Fund for 430,300 Preferred Shares of the company. The securities being issued in this transaction are on a hold period for 1 year. The Preferred Shares are 100%convertible into 662,000 Common Shares of the company at a conversion price of KRW 27,199 and the conversion billing period will start from June 06, 2027 till June 04, 2031. The transaction has been approved by the Board of Directors of the company. The transaction has been carried out by way of third-party allotment. The transaction is expected to close on June 04, 2026.
On May 13, 2026, the company announced that Preferred Shares100% convertible into 662,000 shares at fixed conversion price of KRW 28,057 and the conversion billing period will start from June 06, 2027 till June 04, 2031. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩25,050, the stock trades at a trailing P/E ratio of 75.9x. Average forward P/E is 18x in the Machinery industry in South Korea. Total returns to shareholders of 539% over the past three years. Valuation Update With 7 Day Price Move • Mar 27
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩22,050, the stock trades at a trailing P/E ratio of 69.5x. Average forward P/E is 17x in the Machinery industry in South Korea. Total returns to shareholders of 460% over the past three years. Reported Earnings • Mar 24
Full year 2025 earnings released: EPS: ₩330 (vs ₩372 in FY 2024) Full year 2025 results: EPS: ₩330 (down from ₩372 in FY 2024). Revenue: ₩68.7b (up 27% from FY 2024). Net income: ₩4.25b (down 11% from FY 2024). Profit margin: 6.2% (down from 8.8% in FY 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 38% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has increased by 62% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩16,690, the stock trades at a trailing P/E ratio of 61.1x. Average forward P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 297% over the past three years. Annonce • Mar 04
Neo Technical System Co., Ltd., Annual General Meeting, Mar 26, 2026 Neo Technical System Co., Ltd., Annual General Meeting, Mar 26, 2026, at 11:00 Tokyo Standard Time. Location: auditorium, 38-9, yongdae-gil, juksan-myeon, gyeonggi-do, anseong South Korea Buy Or Sell Opportunity • Feb 11
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 167% to ₩12,230. The fair value is estimated to be ₩10,001, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years, while earnings per share has been flat. Valuation Update With 7 Day Price Move • Jan 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩13,430, the stock trades at a trailing P/E ratio of 49.2x. Average forward P/E is 18x in the Machinery industry in South Korea. Total returns to shareholders of 219% over the past three years. Buy Or Sell Opportunity • Jan 21
Now 35% overvalued after recent price rise Over the last 90 days, the stock has risen 207% to ₩13,410. The fair value is estimated to be ₩9,940, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years, while earnings per share has been flat. Valuation Update With 7 Day Price Move • Jan 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩10,370, the stock trades at a trailing P/E ratio of 38x. Average trailing P/E is 20x in the Machinery industry in South Korea. Total returns to shareholders of 146% over the past three years. Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩9,210, the stock trades at a trailing P/E ratio of 33.7x. Average trailing P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 124% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 03 April 2026. Payout ratio is on the higher end at 85%, however this is supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.0%). New Risk • Dec 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 12% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 2.0% per year over the past 5 years. 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 (₩108.0b market cap, or US$73.2m). Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to ₩7,340, the stock trades at a trailing P/E ratio of 26.9x. Average trailing P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 76% over the past three years. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩4,995, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 18x in the Machinery industry in South Korea. Total returns to shareholders of 15% over the past three years. Reported Earnings • Nov 16
Third quarter 2025 earnings released: EPS: ₩127 (vs ₩90.66 loss in 3Q 2024) Third quarter 2025 results: EPS: ₩127 (up from ₩90.66 loss in 3Q 2024). Revenue: ₩18.0b (up 40% from 3Q 2024). Net income: ₩1.64b (up ₩2.53b from 3Q 2024). Profit margin: 9.1% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 4% per year. Declared Dividend • Nov 08
Dividend of ₩200 announced Dividend of ₩200 is the same as last year. Ex-date: 29th December 2025 Payment date: 3rd April 2026 Dividend yield will be 4.5%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (51% earnings payout ratio) and cash flows (64% cash payout ratio). The dividend has decreased over the past 66 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 43% to shift the payout ratio to a potentially unsustainable range, which is more than the 9.6% EPS decline seen over the last 5 years. Annonce • Nov 07
Neo Technical System Co., Ltd. announces Annual dividend, payable on April 03, 2026 Neo Technical System Co., Ltd. announced Annual dividend of KRW 200.0000 per share payable on April 03, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. New Risk • Oct 29
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 7.5% 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: Major Risk Earnings have declined by 0.6% per year over the past 5 years. 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 (7.5% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (₩58.5b market cap, or US$41.1m). Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩3,805, the stock trades at a trailing P/E ratio of 45.5x. Average trailing P/E is 26x in the Machinery industry in South Korea. Total loss to shareholders of 2.1% over the past three years. New Risk • Aug 27
New major risk - Revenue and earnings growth Earnings have declined by 0.6% per year over the past 5 years. 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 declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. 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 have declined by 0.6% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Market cap is less than US$100m (₩42.2b market cap, or US$30.3m). Reported Earnings • Mar 22
Full year 2024 earnings released: EPS: ₩635 (vs ₩186 loss in FY 2023) Full year 2024 results: EPS: ₩635 (up from ₩186 loss in FY 2023). Revenue: ₩54.3b (flat on FY 2023). Net income: ₩4.79b (up ₩7.16b from FY 2023). Profit margin: 8.8% (up from net loss in FY 2023). Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Annonce • Feb 28
Neo Technical System Co., Ltd., Annual General Meeting, Mar 26, 2025 Neo Technical System Co., Ltd., Annual General Meeting, Mar 26, 2025, at 11:00 Tokyo Standard Time. Location: auditorium, 38-9, yongdae-gil, juksan-myeon, gyeonggi-do, anseong South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 03 April 2025. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 6.1%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (2.0%). New Risk • Dec 07
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended September 2011. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risk Latest financial reports are more than 1 year old (reported September 2011 fiscal period end). 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 (₩42.3b market cap, or US$29.7m). New Risk • Nov 26
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 66% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.3% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Market cap is less than US$100m (₩44.2b market cap, or US$31.7m). Reported Earnings • Mar 21
Full year 2023 earnings released: ₩239 loss per share (vs ₩405 profit in FY 2022) Full year 2023 results: ₩239 loss per share (down from ₩405 profit in FY 2022). Revenue: ₩58.5b (down 27% from FY 2022). Net loss: ₩3.05b (down 159% from profit in FY 2022). Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. New Risk • Mar 15
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Dividend per share is over 8x cash flows per share. Minor Risks Shareholders have been diluted in the past year (4.8% increase in shares outstanding). Market cap is less than US$100m (₩44.5b market cap, or US$33.6m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩250 per share at 6.9% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 04 April 2024. The company is not currently making a profit and there are not enough cash flows to support it either. Trailing yield: 6.9%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.3%). New Risk • Aug 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 4.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 111% Cash payout ratio: 117% Minor Risks Profit margins are more than 30% lower than last year (4.1% net profit margin). Shareholders have been diluted in the past year (4.0% increase in shares outstanding). Market cap is less than US$100m (₩50.2b market cap, or US$37.5m). Reported Earnings • Mar 19
Full year 2022 earnings released: EPS: ₩405 (vs ₩497 in FY 2021) Full year 2022 results: EPS: ₩405 (down from ₩497 in FY 2021). Revenue: ₩80.4b (up 22% from FY 2021). Net income: ₩5.16b (down 11% from FY 2021). Profit margin: 6.4% (down from 8.8% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩250 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 05 April 2023. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 5.1%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.1%). Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩4,705, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total returns to shareholders of 34% over the past three years. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improved over the past week After last week's 17% share price gain to ₩6,000, the stock trades at a trailing P/E ratio of 25.4x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total returns to shareholders of 79% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩250 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 31 March 2022. Payout ratio is on the higher end at 88% but the company is not cash flow positive. Trailing yield: 4.9%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (2.8%). Reported Earnings • Mar 14
Full year 2020 earnings released: EPS ₩19.00 (vs ₩135 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩38.0b (down 11% from FY 2019). Net income: ₩190.1m (down 86% from FY 2019). Profit margin: 0.5% (down from 3.2% in FY 2019). Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improved over the past week After last week's 18% share price gain to ₩4,245, the stock is trading at a trailing P/E ratio of 40x, up from the previous P/E ratio of 33.9x. This compares to an average P/E of 25x in the Machinery industry in South Korea. Total returns to shareholders over the past three years are 8.6%. Is New 90 Day High Low • Feb 04
New 90-day high: ₩4,185 The company is up 10.0% from its price of ₩3,790 on 06 November 2020. The South Korean market is up 27% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 16% over the same period. Is New 90 Day High Low • Jan 19
New 90-day low: ₩3,685 The company is down 2.0% from its price of ₩3,755 on 21 October 2020. The South Korean market is up 26% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 20% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩250 Per Share Will be paid on the 2nd of April to those who are registered shareholders by the 29th of December. The trailing yield of 6.4% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (2.8%). Is New 90 Day High Low • Dec 09
New 90-day high: ₩3,920 The company is up 5.0% from its price of ₩3,730 on 10 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 14% over the same period.