New Risk • Apr 02
New major risk - Revenue and earnings growth Earnings have declined by 6.5% 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 Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 120% Earnings have declined by 6.5% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩61.8b market cap, or US$40.8m). Annonce • Feb 13
Nsys Co., Ltd., Annual General Meeting, Mar 31, 2026 Nsys Co., Ltd., Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 18, smart sandan 3-ro, eumbong-myeon, chungcheongnam-do, asan South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩160 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 10 April 2026. The company is not currently making a profit and is not cash flow positive. 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 • Nov 28
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.5% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. 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 Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Market cap is less than US$100m (₩64.6b market cap, or US$44.0m). Declared Dividend • Nov 08
Dividend of ₩160 announced Dividend of ₩160 is the same as last year. Ex-date: 29th December 2025 Payment date: 10th April 2026 Dividend yield will be 2.4%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (324% earnings payout ratio). However, it is covered by cash flows (82% cash payout ratio). The dividend has increased by an average of 23% per year over the past 4 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 260% to bring the payout ratio under control. However, EPS has declined by 38% over the last 5 years so the company would need to reverse this trend. Annonce • Nov 07
Nsys Co., Ltd. announces Annual dividend, payable on April 10, 2026 Nsys Co., Ltd. announced Annual dividend of KRW 160.0000 per share payable on April 10, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. New Risk • Aug 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 2,476% 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: Minor Risks Dividend is not well covered by earnings (324% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.9% net profit margin). Market cap is less than US$100m (₩75.6b market cap, or US$54.5m). 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 ₩7,330, the stock trades at a trailing P/E ratio of 7.5x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total loss to shareholders of 61% over the past three years. Reported Earnings • Mar 27
Full year 2024 earnings released: EPS: ₩983 (vs ₩218 in FY 2023) Full year 2024 results: EPS: ₩983 (up from ₩218 in FY 2023). Revenue: ₩62.9b (up 23% from FY 2023). Net income: ₩10.2b (up 352% from FY 2023). Profit margin: 16% (up from 4.4% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Feb 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩8,950, the stock trades at a trailing P/E ratio of 12.2x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total loss to shareholders of 49% over the past three years. New Risk • Feb 14
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.1% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. 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: 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 (₩80.1b market cap, or US$55.4m). Annonce • Feb 14
Nsys Co., Ltd., Annual General Meeting, Mar 31, 2025 Nsys Co., Ltd., Annual General Meeting, Mar 31, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 18, smartsandan3-ro, chungcheongnam-do, asan South Korea Reported Earnings • Nov 13
Third quarter 2024 earnings released: EPS: ₩147 (vs ₩16.00 in 3Q 2023) Third quarter 2024 results: EPS: ₩147 (up from ₩16.00 in 3Q 2023). Revenue: ₩19.2b (up 43% from 3Q 2023). Net income: ₩1.52b (up ₩1.35b from 3Q 2023). Profit margin: 7.9% (up from 1.2% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 23
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩11,180, the stock trades at a trailing P/E ratio of 18.6x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total loss to shareholders of 40% over the past three years. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: ₩284 (vs ₩7.00 loss in 2Q 2023) Second quarter 2024 results: EPS: ₩284 (up from ₩7.00 loss in 2Q 2023). Revenue: ₩17.8b (up 45% from 2Q 2023). Net income: ₩2.93b (up ₩3.01b from 2Q 2023). Profit margin: 17% (up from net loss in 2Q 2023). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to ₩8,260, the stock trades at a trailing P/E ratio of 26.6x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total loss to shareholders of 64% over the past three years. New Risk • Jun 10
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 8.3% 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 (8.3% average weekly change). Market cap is less than US$100m (₩96.4b market cap, or US$70.1m). Annonce • Apr 30
Nsys Co., Ltd. announced that it has received KRW 10 billion in funding from Cornerstone Investment Partners Co., Ltd. and another investor On April 29, 2024, Nsys Co., Ltd. closed the transaction. Annonce • Apr 26
Nsys Co., Ltd. announced that it expects to receive KRW 10 billion in funding from Cornerstone Investment Partners Co., Ltd. and another investor Nsys Co., Ltd. announced a private placement to issue Series 3 Bearer Interest Unsecured Private Placement Convertible Bonds for the gross proceeds of KRW 10,000,000,000 on April 25, 2024. The transaction will include participation from returning and new investor High YG Win-Win New Technology Investment Fund No. 2 for KRW 9,000,000,000 and Cornerstone Investment Partners Co., Ltd. for KRW 1,000,000,000. The transaction has been approved by the shareholders, expected to close on April 29, 2024 and restricted to a hold period. The bonds are 100% convertible into 1,213,886 shares at a fixed conversion price of KRW 8,238 from April 29, 2025 to March 25, 2029. The bonds bear 0 coupon rate and 2% maturity rate and matures on April 29, 2029. Reported Earnings • Mar 26
Full year 2023 earnings released: EPS: ₩218 (vs ₩337 in FY 2022) Full year 2023 results: EPS: ₩218 (down from ₩337 in FY 2022). Revenue: ₩51.2b (up 22% from FY 2022). Net income: ₩2.25b (down 36% from FY 2022). Profit margin: 4.4% (down from 8.4% in FY 2022). The decrease in margin was driven by higher expenses. Upcoming Dividend • Dec 20
Upcoming dividend of ₩60.00 per share at 0.6% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 10 April 2024. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (2.3%). Reported Earnings • Nov 17
Third quarter 2023 earnings released: EPS: ₩16.00 (vs ₩79.00 in 3Q 2022) Third quarter 2023 results: EPS: ₩16.00 (down from ₩79.00 in 3Q 2022). Revenue: ₩13.4b (up 73% from 3Q 2022). Net income: ₩165.1m (down 80% from 3Q 2022). Profit margin: 1.2% (down from 11% in 3Q 2022). New Risk • Aug 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩129.0b (US$96.0m) 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 Profit margins are more than 30% lower than last year (8.0% net profit margin). Market cap is less than US$100m (₩129.0b market cap, or US$96.0m). Reported Earnings • May 14
First quarter 2023 earnings released: EPS: ₩200 (vs ₩176 in 1Q 2022) First quarter 2023 results: EPS: ₩200 (up from ₩176 in 1Q 2022). Revenue: ₩14.4b (up 51% from 1Q 2022). Net income: ₩2.06b (up 11% from 1Q 2022). Profit margin: 14% (down from 20% in 1Q 2022). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Apr 26
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩12,930, the stock trades at a trailing P/E ratio of 38.2x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total loss to shareholders of 29% over the past year. Valuation Update With 7 Day Price Move • Mar 27
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩14,380, the stock trades at a trailing P/E ratio of 42.5x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total loss to shareholders of 25% over the past year. Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: ₩337 (vs ₩477 in FY 2021) Full year 2022 results: EPS: ₩337 (down from ₩477 in FY 2021). Revenue: ₩42.0b (down 1.7% from FY 2021). Net income: ₩3.53b (down 27% from FY 2021). Profit margin: 8.4% (down from 11% in FY 2021). The decrease in margin was primarily driven by lower revenue. Upcoming Dividend • Dec 21
Upcoming dividend of ₩70.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (2.1%). Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩12,100, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Machinery industry in South Korea. Total loss to shareholders of 46% over the past year. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩14,750, the stock trades at a trailing P/E ratio of 22.5x. Average forward P/E is 8x in the Machinery industry in South Korea. Total loss to shareholders of 21% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ₩9,624 per share. Valuation Update With 7 Day Price Move • Sep 14
Investor sentiment improved over the past week After last week's 27% share price gain to ₩24,800, the stock trades at a trailing P/E ratio of 60.8x. Average forward P/E is 11x in the Machinery industry in South Korea.