Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩2,885, the stock trades at a trailing P/E ratio of 26.1x. Average trailing P/E is 55x in the Aerospace & Defense industry in South Korea. Total loss to shareholders of 22% over the past three years. New Risk • Mar 21
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.2x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (₩51.6b market cap, or US$34.3m). Annonce • Mar 13
Hizeaero Co., Ltd., Annual General Meeting, Mar 26, 2026 Hizeaero Co., Ltd., Annual General Meeting, Mar 26, 2026, at 09:01 Tokyo Standard Time. Location: auditorium, 18, saneop-ro 111beon-gil, jeongchon-myeon, gyeongsangnam-do, jinju South Korea New Risk • Feb 19
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 Share price has been volatile over the past 3 months (9.9% average weekly change). Market cap is less than US$100m (₩52.3b market cap, or US$36.1m). Reported Earnings • Nov 16
Third quarter 2025 earnings released: EPS: ₩24.00 (vs ₩87.00 loss in 3Q 2024) Third quarter 2025 results: EPS: ₩24.00 (up from ₩87.00 loss in 3Q 2024). Revenue: ₩21.5b (up 7.3% from 3Q 2024). Net income: ₩443.6m (up ₩2.08b from 3Q 2024). Profit margin: 2.1% (up from net loss in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. New Risk • Aug 29
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 11% 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 (11% average weekly change). Earnings have declined by 4.1% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩47.0b market cap, or US$33.9m). New Risk • Jul 25
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 9.6% 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 12% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.6% average weekly change). Market cap is less than US$100m (₩52.5b market cap, or US$38.0m). Reported Earnings • May 18
First quarter 2025 earnings released: EPS: ₩50.00 (vs ₩23.00 loss in 1Q 2024) First quarter 2025 results: EPS: ₩50.00 (up from ₩23.00 loss in 1Q 2024). Revenue: ₩18.9b (down 17% from 1Q 2024). Net income: ₩933.5m (up ₩1.36b from 1Q 2024). Profit margin: 4.9% (up from net loss in 1Q 2024). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 22
Full year 2024 earnings released: ₩502 loss per share (vs ₩431 loss in FY 2023) Full year 2024 results: ₩502 loss per share (further deteriorated from ₩431 loss in FY 2023). Revenue: ₩86.5b (up 7.2% from FY 2023). Net loss: ₩9.39b (loss widened 16% from FY 2023). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 34% per year, which means it is significantly lagging earnings. Annonce • Mar 08
Hizeaero Co., Ltd., Annual General Meeting, Mar 26, 2025 Hizeaero Co., Ltd., Annual General Meeting, Mar 26, 2025, at 09:00 Tokyo Standard Time. Location: auditorium, 18, saneop-ro 111beon-gil, jeongchon-myeon, gyeongsangnam-do, jinju South Korea New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Market cap is less than US$100m (₩34.1b market cap, or US$25.9m). Reported Earnings • Mar 21
Full year 2023 earnings released: ₩431 loss per share (vs ₩683 loss in FY 2022) Full year 2023 results: ₩431 loss per share (improved from ₩683 loss in FY 2022). Revenue: ₩80.8b (up 37% from FY 2022). Net loss: ₩8.07b (loss narrowed 35% from FY 2022). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. New Risk • Aug 30
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₩15b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-₩15b free cash flow). Earnings have declined by 56% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩59.1b market cap, or US$44.7m). Reported Earnings • Mar 19
Full year 2022 earnings released: ₩683 loss per share (vs ₩1,081 loss in FY 2021) Full year 2022 results: ₩683 loss per share (improved from ₩1,081 loss in FY 2021). Revenue: ₩58.8b (down 6.1% from FY 2021). Net loss: ₩12.4b (loss narrowed 31% from FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Buying Opportunity • Nov 02
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 28%. The fair value is estimated to be ₩3,786, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 2.7% over the last 3 years. Meanwhile, the company became loss making. Annonce • May 01
Hizeaero Co., Ltd. announced that it has received KRW 15.83504157 billion in funding On April 30, 2021, Hizeaero Co., Ltd. (KOSDAQ:A221840) closed the transaction. Annonce • Apr 29
Hizeaero Co., Ltd. announced that it expects to receive KRW 15.83504157 billion in funding Hizeaero Co., Ltd. (KOSDAQ:A221840) announced a private placement of round 1 unregistered non-couponed non-guaranteed private convertible bond for the gross proceeds of KRW 12,000,000,000 and round 2 unregistered non-coupon nonguaranteed private exchangeable bonds for gross proceeds of KRW 3,835,041,570 for aggregate proceeds of KRW 15,835,041,570 on April 28, 2021. The transaction will include participation from new investor Simone Mezzanine Hedge Fund 5. The bonds carry a 0% surface interest rate and interest rate to maturity. The bonds will mature on April 30, 2024. The round 1 bonds will convert into 2,251,407 common shares of the company, representing the stake of 12.72%, at a conversion price of KRW 5,330 per share and round 2 bonds will convert into 600,163 common shares of the company, representing the stake of 3.39%, at a conversion price of KRW 6,390 per share. The conversion period for round 1 bonds will start on April 30, 2022 and end on March 30, 2024 and for round 2 bonds will start on March 30, 2021 and end on March 30, 2024. The transaction has been approved by board of directors of the company. The bonds carry a hold period of one year. The payment date and subscription date of bonds is April 30, 2021. Reported Earnings • Mar 19
Full year 2020 earnings released: ₩236 loss per share (vs ₩221 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: ₩52.9b (down 28% from FY 2019). Net loss: ₩3.87b (down 206% from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Dec 11
New 90-day high: ₩5,480 The company is up 53% from its price of ₩3,585 on 11 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Aerospace & Defense industry, which is up 3.0% over the same period. Is New 90 Day High Low • Nov 11
New 90-day high: ₩5,400 The company is up 48% from its price of ₩3,660 on 13 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Aerospace & Defense industry, which is down 3.0% over the same period. Valuation Update With 7 Day Price Move • Nov 04
Market bids up stock over the past week After last week's 19% share price gain to ₩4,745, the stock is trading at a trailing P/E ratio of 79.9x, up from the previous P/E ratio of 67.4x. This compares to an average P/E of 20x in the Aerospace & Defense industry in South Korea. Total return to shareholders over the past three years is a loss of 37%. Valuation Update With 7 Day Price Move • Oct 29
Market bids up stock over the past week After last week's 32% share price gain to ₩4,600, the stock is trading at a trailing P/E ratio of 77.5x, up from the previous P/E ratio of 58.8x. This compares to an average P/E of 20x in the Aerospace & Defense industry in South Korea. Total return to shareholders over the past three years is a loss of 40%. Is New 90 Day High Low • Oct 26
New 90-day high: ₩4,250 The company is up 15% from its price of ₩3,710 on 28 July 2020. The South Korean market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Aerospace & Defense industry, which is flat over the same period. Valuation Update With 7 Day Price Move • Oct 26
Market bids up stock over the past week After last week's 19% share price gain to ₩4,250, the stock is trading at a trailing P/E ratio of 71.6x, up from the previous P/E ratio of 60.4x. This compares to an average P/E of 21x in the Aerospace & Defense industry in South Korea. Total return to shareholders over the past three years is a loss of 43%. 
