Buy Or Sell Opportunity • Jun 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 38% to ₩14,800. The fair value is estimated to be ₩18,607, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 21% over the last 3 years. Earnings per share has declined by 10%. New Risk • Jun 01
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩149.6b (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 Risks Earnings have declined by 16% per year over the past 5 years. High level of non-cash earnings (36% accrual ratio). Minor Risk Market cap is less than US$100m (₩149.6b market cap, or US$99.2m). Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩16,010, the stock trades at a trailing P/E ratio of 8.3x. Average trailing P/E is 37x in the Electrical industry in South Korea. Total loss to shareholders of 33% over the past three years. New Risk • May 29
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 36% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 16% per year over the past 5 years. High level of non-cash earnings (36% accrual ratio). Annonce • Mar 13
NOVATECH Co., Ltd., Annual General Meeting, Mar 27, 2026 NOVATECH Co., Ltd., Annual General Meeting, Mar 27, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 120, heungdeokjungang-ro, giheung-gu, gyeonggi-do, yongin South Korea Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₩20,400, the stock trades at a trailing P/E ratio of 10.6x. Average trailing P/E is 38x in the Electrical industry in South Korea. Total loss to shareholders of 13% over the past three years. Valuation Update With 7 Day Price Move • Jan 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩24,950, the stock trades at a trailing P/E ratio of 12.9x. Average trailing P/E is 27x in the Electrical industry in South Korea. Total returns to shareholders of 21% over the past three years. New Risk • Jan 07
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 8.7% 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 9.8% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (98% cash payout ratio). Share price has been volatile over the past 3 months (8.7% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩24,100, the stock trades at a trailing P/E ratio of 12.5x. Average trailing P/E is 27x in the Electrical industry in South Korea. Total returns to shareholders of 15% over the past three years. Declared Dividend • Dec 15
Dividend of ₩1,409 announced Dividend of ₩1,409 is the same as last year. Ex-date: 29th December 2025 Payment date: 25th April 2026 Dividend yield will be 6.7%, which is higher than the industry average of 0.4%. Sustainability & Growth Dividend is covered by earnings (75% earnings payout ratio) but not adequately covered by cash flows (98% cash payout ratio). The dividend has increased by an average of 65% per year over the past 5 years and payments have been stable during that time. Earnings per share has grown by 5.1% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Annonce • Dec 13
NOVATECH Co., Ltd. announces Annual dividend, payable on April 25, 2026 NOVATECH Co., Ltd. announced Annual dividend of KRW 1409.0000 per share payable on April 25, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. New Risk • Nov 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 98% Dividend yield: 6.9% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 9.8% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (98% cash payout ratio). Large one-off items impacting financial results. New Risk • Oct 13
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 5.0% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.5% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩22,700, the stock trades at a trailing P/E ratio of 12.3x. Average trailing P/E is 24x in the Electrical industry in South Korea. Total returns to shareholders of 27% over the past three years. New Risk • Aug 28
New major risk - Revenue and earnings growth Earnings have declined by 5.0% 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 5.0% per year over the past 5 years. Minor Risk Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩22,000, the stock trades at a trailing P/E ratio of 13.8x. Average trailing P/E is 25x in the Electrical industry in South Korea. Total loss to shareholders of 19% over the past three years. New Risk • May 29
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 22% Last year net profit margin: 32% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (17% average weekly change). Minor Risks Dividend is not well covered by earnings (93% payout ratio). Profit margins are more than 30% lower than last year (22% net profit margin). New Risk • Apr 27
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 106% Dividend yield: 7.1% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (17% average weekly change). Minor Risk Dividend is not well covered by cash flows (106% cash payout ratio). Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩19,630, the stock trades at a trailing P/E ratio of 10.6x. Average trailing P/E is 19x in the Electrical industry in South Korea. Total loss to shareholders of 42% over the past three years. Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩18,350, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 19x in the Electrical industry in South Korea. Total loss to shareholders of 45% over the past three years. New Risk • Mar 20
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. This is currently the only risk that has been identified for the company. Annonce • Mar 14
NOVATECH Co., Ltd., Annual General Meeting, Mar 28, 2025 NOVATECH Co., Ltd., Annual General Meeting, Mar 28, 2025, at 09:30 Tokyo Standard Time. Location: conference room, 120, heungdeokjungang-ro, giheung-gu, gyeonggi-do, yongin South Korea Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩16,950, the stock trades at a trailing P/E ratio of 9.7x. Average trailing P/E is 21x in the Electrical industry in South Korea. Total loss to shareholders of 59% over the past three years. Valuation Update With 7 Day Price Move • Dec 13
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to ₩15,000, the stock trades at a trailing P/E ratio of 8.5x. Average trailing P/E is 20x in the Electrical industry in South Korea. Total loss to shareholders of 59% over the past three years. New Risk • Dec 11
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 11% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩13,530, the stock trades at a trailing P/E ratio of 5.5x. Average trailing P/E is 17x in the Electrical industry in South Korea. Total loss to shareholders of 60% over the past three years. Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩10,230, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 18x in the Electrical industry in South Korea. Total loss to shareholders of 70% over the past three years. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₩11,950, the stock trades at a trailing P/E ratio of 4.3x. Average trailing P/E is 22x in the Electrical industry in South Korea. Total loss to shareholders of 68% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩200 per share at 0.8% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 17 April 2024. Payout ratio is a comfortable 7.2% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (0.3%). Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩35,500, the stock trades at a trailing P/E ratio of 23.2x. Average trailing P/E is 20x in the Electrical industry in South Korea. Total returns to shareholders of 300% over the past three years. Valuation Update With 7 Day Price Move • Apr 26
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩29,500, the stock trades at a trailing P/E ratio of 18.7x. Average trailing P/E is 20x in the Electrical industry in South Korea. Total returns to shareholders of 388% over the past three years. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 46% After last week's 46% share price gain to ₩34,750, the stock trades at a trailing P/E ratio of 22x. Average trailing P/E is 19x in the Electrical industry in South Korea. Total returns to shareholders of 575% over the past three years. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩26,550, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 19x in the Electrical industry in South Korea. Total returns to shareholders of 237% over the past three years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩143 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. Payout ratio is a comfortable 6.1% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (0.9%). Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩20,850, the stock trades at a trailing P/E ratio of 7.1x. Average trailing P/E is 16x in the Electrical industry in South Korea. Total returns to shareholders of 179% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩150 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 29 April 2022. Payout ratio is a comfortable 7.3% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of South Korean dividend payers (2.4%). In line with average of industry peers (0.8%). Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improved over the past week After last week's 21% share price gain to ₩49,550, the stock trades at a trailing P/E ratio of 9.9x. Average trailing P/E is 26x in the Electrical industry in South Korea. Total returns to shareholders of 716% over the past year. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improved over the past week After last week's 19% share price gain to ₩39,650, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 23x in the Electrical industry in South Korea. Total returns to shareholders of 769% over the past year. Is New 90 Day High Low • Dec 29
New 90-day high: ₩43,000 The company is up 154% from its price of ₩16,900 on 29 September 2020. The South Korean market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electrical industry, which is up 17% over the same period. Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improved over the past week After last week's 20% share price gain to ₩43,000, the stock is trading at a trailing P/E ratio of 27.3x, up from the previous P/E ratio of 22.6x. This compares to an average P/E of 23x in the Electrical industry in South Korea. Total returns to shareholders over the past year are 346%. Is New 90 Day High Low • Dec 10
New 90-day high: ₩76,500 The company is up 216% from its price of ₩24,200 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 Electrical industry, which is up 2.0% over the same period. Valuation Update With 7 Day Price Move • Dec 02
Market bids up stock over the past week After last week's 25% share price gain to ₩74,800, the stock is trading at a trailing P/E ratio of 23.7x, up from the previous P/E ratio of 18.9x. This compares to an average P/E of 22x in the Electrical industry in South Korea. Total returns to shareholders over the past year are 378%. Valuation Update With 7 Day Price Move • Nov 30
Market bids up stock over the past week After last week's 18% share price gain to ₩63,600, the stock is trading at a trailing P/E ratio of 20.2x, up from the previous P/E ratio of 17.1x. This compares to an average P/E of 21x in the Electrical industry in South Korea. Total returns to shareholders over the past year are 316%. Valuation Update With 7 Day Price Move • Nov 18
Market bids up stock over the past week After last week's 26% share price gain to ₩48,450, the stock is trading at a trailing P/E ratio of 14.7x, up from the previous P/E ratio of 11.7x. This compares to an average P/E of 18x in the Electrical industry in South Korea. Total returns to shareholders over the past year are 222%. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS ₩1,909 The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2020 results: Revenue: ₩28.8b (up 204% from 3Q 2019). Net income: ₩9.08b (up 141% from 3Q 2019). Profit margin: 32% (down from 40% in 3Q 2019). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Nov 12
Market bids up stock over the past week After last week's 17% share price gain to ₩43,100, the stock is trading at a trailing P/E ratio of 20.3x, up from the previous P/E ratio of 17.4x. This compares to an average P/E of 18x in the Electrical industry in South Korea. Total returns to shareholders over the past year are 180%. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 22% share price gain to ₩39,000, the stock is trading at a trailing P/E ratio of 18.4x, up from the previous P/E ratio of 15x. This compares to an average P/E of 18x in the Electrical industry in South Korea. Total returns to shareholders over the past year are 149%. Is New 90 Day High Low • Nov 05
New 90-day high: ₩36,850 The company is up 54% from its price of ₩23,900 on 07 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 Electrical industry, which is up 9.0% over the same period. Is New 90 Day High Low • Oct 13
New 90-day high: ₩36,700 The company is up 81% from its price of ₩20,250 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 Electrical industry, which is up 44% over the same period.