Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩2,125, the stock trades at a trailing P/E ratio of 2x. Average trailing P/E is 12x in the Software industry in South Korea. Total loss to shareholders of 46% over the past three years. New Risk • May 31
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 22% 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 Share price has been highly volatile over the past 3 months (22% average weekly change). High level of non-cash earnings (22% accrual ratio). Shareholders have been substantially diluted in the past year (35% increase in shares outstanding). Minor Risks High level of debt (41% net debt to equity). Market cap is less than US$100m (₩58.2b market cap, or US$38.6m). Valuation Update With 7 Day Price Move • May 29
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩3,190, the stock trades at a trailing P/E ratio of 3.3x. Average trailing P/E is 13x in the Software industry in South Korea. Total loss to shareholders of 20% over the past three years. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment deteriorates as stock falls 33% After last week's 33% share price decline to ₩717, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 16x in the Software industry in South Korea. Total loss to shareholders of 14% over the past three years. New Risk • Apr 16
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 14% 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 Shareholders have been substantially diluted in the past year (35% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (₩83.3b market cap, or US$56.4m). Valuation Update With 7 Day Price Move • Apr 15
Investor sentiment improves as stock rises 37% After last week's 37% share price gain to ₩703, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 15x in the Software industry in South Korea. Total loss to shareholders of 24% over the past three years. New Risk • Nov 26
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.7x 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 Risks Interest payments are not well covered by earnings (2.7x net interest cover). Shareholders have been substantially diluted in the past year (31% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (8.5% average weekly change). Market cap is less than US$100m (₩63.3b market cap, or US$43.2m). New Risk • Nov 20
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 31% This is considered a major 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 Risks Earnings have declined by 1.2% per year over the past 5 years. Shareholders have been substantially diluted in the past year (31% increase in shares outstanding). Minor Risks Less than 1 year of cash runway based on current free cash flow (-₩28b). Share price has been volatile over the past 3 months (8.5% average weekly change). Market cap is less than US$100m (₩61.0b market cap, or US$41.5m). New Risk • Aug 29
New major risk - Revenue and earnings growth Earnings have declined by 1.2% 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 1.2% per year over the past 5 years. Minor Risks Less than 1 year of cash runway based on current free cash flow (-₩28b). Share price has been volatile over the past 3 months (9.0% average weekly change). Shareholders have been diluted in the past year (30% increase in shares outstanding). Market cap is less than US$100m (₩55.7b market cap, or US$40.1m). Annonce • Aug 27
Asia Strategy Partners Llc agreed to acquire 19.49% stake in SGA Co,. Ltd (KOSDAQ:A049470) from Axis Investment Co., Ltd., SGA Futures Co., Ltd., SGA Solutions Co.,Ltd. (KOSDAQ:A184230) and Sga Holdings Co., Ltd. for KRW 28.7 billion. Asia Strategy Partners Llc agreed to acquire 19.49% stake in SGA Co,. Ltd (KOSDAQ:A049470) from Axis Investment Co., Ltd., SGA Futures Co., Ltd., SGA Solutions Co.,Ltd. (KOSDAQ:A184230) and Sga Holdings Co., Ltd. for KRW 28.7 billion on August 26, 2025. A cash consideration of KRW 28.64 billion will be paid by Asia Strategy Partners Llc. As part of consideration, KRW 28.64 billion is paid towards common equity of SGA Co,. Ltd. Before completion, Axis Investment Co., Ltd., held 2.56% stake, SGA Solutions Co.,Ltd. held 1.32% stake, Sga Holdings Co., Ltd. held 25.3% stake, SGA Futures Co., Ltd., held 5.8% stake in SGA Co,. Ltd . After completion, Sga Holdings Co., Ltd. will hold 11.15% stake and Asia Strategy Partners Llc will hold 19.49% stake in SGA Co,. Ltd.
The expected completion of the transaction is September 10, 2025. Annonce • Jul 23
SGA Solutions Co.,Ltd. (KOSDAQ:A184230) entered into agreement to acquire SGN Co., Ltd. from SGN Solutions Co., Ltd. and others for approximately KRW 480 million. SGA Solutions Co.,Ltd. (KOSDAQ:A184230) entered into agreement to acquire SGN Co., Ltd. from SGN Solutions Co., Ltd. and others for approximately KRW 480 million on July 21, 2025. The consideration consists of 0.64 million common equity of SGA Solutions Co.,Ltd. at a ratio of 0.060098 per common equity of SGN Co., Ltd. As part of consideration, an undisclosed value is paid towards common equity of SGN Co., Ltd. The merger agreement date has been set as July 24, 2025.
For the period ending December 31, 2024, SGN Co., Ltd. reported net loss of KRW 2.41 billion. As of December 31, 2024, SGN Co., Ltd. reported total assets of KRW 8.05 billion and total common equity of KRW 2.28 billion.
The transaction is subject to approval of offer by acquirer shareholders. The expected completion of the transaction is October 1, 2025. New Risk • Jul 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 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). Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (₩52.6b market cap, or US$37.9m). New Risk • Jul 02
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% 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: Minor Risks Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (₩46.6b market cap, or US$34.3m). Annonce • Jun 05
SGA Solutions Co.,Ltd. announced that it expects to receive KRW 4.999999781 billion in funding SGA Solutions Co.,Ltd. announces a private placement to issue 12,106,537 common shares at a price of KRW 413 per share for gross proceeds of KRW 4,999,999,781 on June 5, 2025. Expected closing date of the issuance is June 13, 2025. Annonce • Mar 13
SGA Solutions Co.,Ltd., Annual General Meeting, Mar 28, 2025 SGA Solutions Co.,Ltd., Annual General Meeting, Mar 28, 2025, at 10:00 Tokyo Standard Time. Location: seminar room, 54, gwangjinmal-ro, gyeonggi-do, uiwang South Korea New Risk • Dec 03
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: -₩27b 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 Risk Less than 1 year of cash runway based on free cash flow trend (-₩27b free cash flow). Minor Risks Shareholders have been diluted in the past year (10% increase in shares outstanding). Market cap is less than US$100m (₩30.5b market cap, or US$21.7m). 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 Risks Share price has been volatile over the past 3 months (9.6% average weekly change). Shareholders have been diluted in the past year (10% increase in shares outstanding). Market cap is less than US$100m (₩31.2b market cap, or US$23.7m). New Risk • Jul 23
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 7.6% 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: Minor Risks Share price has been volatile over the past 3 months (7.6% average weekly change). Shareholders have been diluted in the past year (10% increase in shares outstanding). Market cap is less than US$100m (₩37.5b market cap, or US$27.1m). New Risk • May 30
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Over 9x increase in shares outstanding. This is considered a major 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. This is currently the only risk that has been identified for the company. New Risk • Feb 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 11% 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: Minor Risks Shareholders have been diluted in the past year (11% increase in shares outstanding). Market cap is less than US$100m (₩46.0b market cap, or US$34.6m). Annonce • Sep 05
SGA Solutions Co.,Ltd. announced that it expects to receive KRW 1.12 billion in funding SGA Solutions Co.,Ltd. announced a private placement to issue Series 7 Convertible bonds for the gross proceeds of KRW 1,120,000,000 on September 4, 2023. The transaction has been approved by the shareholders of the company. The shares are 100% convertible into 1,314,553 shares at a fised conversion price of KRW 852 per share. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩1,095, the stock trades at a trailing P/E ratio of 18.4x. Average trailing P/E is 21x in the Software industry in South Korea. Total returns to shareholders of 48% over the past three years. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improved over the past week After last week's 19% share price gain to ₩897, the stock trades at a trailing P/E ratio of 23.5x. Average trailing P/E is 14x in the Software industry in South Korea. Total loss to shareholders of 34% over the past three years. Annonce • Aug 03
SGA Solutions Co.,Ltd. (KOSDAQ:A184230) entered into an agreement to acquire 21.88% stake in VOICEYE, Inc from SGC Co., Ltd. for KRW 7.4 billion. SGA Solutions Co.,Ltd. (KOSDAQ:A184230) entered into an agreement to acquire 21.88% stake in VOICEYE, Inc from SGC Co., Ltd. for KRW 7.4 billion on August 1, 2022. The transaction will be funded from internal reserve funds.
SGA Solutions Co.,Ltd. (KOSDAQ:A184230) completed the acquisition of 21.88% stake in VOICEYE, Inc from SGC Co., Ltd. on August 1, 2022. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩1,100, the stock trades at a trailing P/E ratio of 8.8x. Average trailing P/E is 25x in the Software industry in South Korea. Total loss to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩1,155, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 23x in the Software industry in South Korea. Total loss to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improved over the past week After last week's 23% share price gain to ₩1,745, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 23x in the Software industry in South Korea. Total loss to shareholders of 26% over the past three years. Is New 90 Day High Low • Mar 02
New 90-day high: ₩1,470 The company is up 12% from its price of ₩1,315 on 02 December 2020. The South Korean market is also up 12% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Software industry, which is up 8.0% over the same period. Is New 90 Day High Low • Nov 24
New 90-day high: ₩1,050 The company is up 17% from its price of ₩899 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. Annonce • Jul 17
SGA Solutions Co.,Ltd. announced that it has received KRW 3 billion in funding On July 10, 2020, SGA Solutions Co.,Ltd. (KOSDAQ:A184230) closed the transaction. Annonce • Jul 09
SGA Solutions Co.,Ltd. announced that it expects to receive KRW 3 billion in funding SGA Solutions Co.,Ltd. (KOSDAQ:A184230) announced a private placement of series 6 non-guaranteed private convertible bonds for gross proceeds of KRW 3,000,000,000 on July 8, 2020. The bonds carry a coupon rate of 2% and an interest rate of 3% and will mature on July 10, 2023. The bonds are convertible into 3,095,975 common shares at a conversion price of KRW 969 per share and the conversion period will start on July 10, 2021 and end on June 10, 2023. The transaction will include participation from Synergy-NH Mezzanine Blind No. 1 New Technology Business Fund for KRW 1,000,000,000, Synergy Mezzanine Blind No. 3 New Technology Business Fund for KRW 500,000,000, Synergy Mezzanine Blind No. 6 New Technology Business Fund for KRW 1,000,000,000 and Synergy Mezzanine Blind No. 7 New Technology Business Fund for KRW 500,000,000. The transaction has been approved by the board of directors of the company. The subscription and payment date of the transaction is July 10, 2020. The securities issued are subject to restriction period of one year from the date of issuance. 