Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩4,045, the stock trades at a trailing P/E ratio of 75.3x. Average trailing P/E is 16x in the Electronic industry in South Korea. Total loss to shareholders of 50% over the past three years. New Risk • Mar 27
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 20% 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 (16% average weekly change). Earnings have declined by 18% per year over the past 5 years. High level of non-cash earnings (20% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (1.7% net profit margin). Market cap is less than US$100m (₩94.2b market cap, or US$62.3m). 공시 • Mar 13
SeA Mechanics Co., Ltd, Annual General Meeting, Mar 26, 2026 SeA Mechanics Co., Ltd, Annual General Meeting, Mar 26, 2026, at 08:00 Tokyo Standard Time. Location: conference room, 80, 1gongdan-ro 10-gil, gyeongsangbuk-do, gumi South Korea Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 32% After last week's 32% share price decline to ₩3,335, the stock trades at a trailing P/E ratio of 69x. Average trailing P/E is 17x in the Electronic industry in South Korea. Total loss to shareholders of 43% over the past three years. New Risk • Feb 26
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 13% 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 (13% average weekly change). Earnings have declined by 16% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.5% net profit margin). Market cap is less than US$100m (₩120.5b market cap, or US$84.5m). New Risk • Jan 26
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 10% 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 16% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.5% net profit margin). Market cap is less than US$100m (₩107.3b market cap, or US$74.5m). Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to ₩3,100, the stock trades at a trailing P/E ratio of 64.1x. Average trailing P/E is 17x in the Electronic industry in South Korea. Total loss to shareholders of 33% over the past three years. Valuation Update With 7 Day Price Move • Jul 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩3,660, the stock trades at a trailing P/E ratio of 65.9x. Average trailing P/E is 15x in the Electronic industry in South Korea. Total loss to shareholders of 51% over the past three years. New Risk • Jul 10
New major risk - Revenue and earnings growth Earnings have declined by 7.0% 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 7.0% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.7% net profit margin). Market cap is less than US$100m (₩82.6b market cap, or US$60.3m). New Risk • Jun 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 9.1% 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 (9.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.7% net profit margin). Market cap is less than US$100m (₩84.8b market cap, or US$61.0m). Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩2,845, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Electronic industry in South Korea. Total loss to shareholders of 61% over the past three years. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩2,690, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Electronic industry in South Korea. Total loss to shareholders of 49% over the past three years. New Risk • Apr 01
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: 2.8% Last year net profit margin: 7.3% 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: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.8% net profit margin). Market cap is less than US$100m (₩55.6b market cap, or US$37.9m). 공시 • Mar 18
SeA Mechanics Co., Ltd, Annual General Meeting, Mar 31, 2025 SeA Mechanics Co., Ltd, Annual General Meeting, Mar 31, 2025, at 08:00 Tokyo Standard Time. Location: conference room, 80, 1gongdan-ro 10-gil, gyeongsangbuk-do, gumi South Korea New Risk • Dec 16
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 (₩64.1b market cap, or US$44.6m). Valuation Update With 7 Day Price Move • Dec 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩2,015, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Electronic industry in South Korea. Total loss to shareholders of 49% over the past year. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩2,430, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 8x in the Electronic industry in South Korea. Total loss to shareholders of 39% over the past year. Valuation Update With 7 Day Price Move • Oct 08
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩3,545, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 10x in the Electronic industry in South Korea. Total loss to shareholders of 11% over the past year. 공시 • Aug 07
SeA Mechanics Co., Ltd (KOSDAQ:A396300) announces an Equity Buyback for KRW 2,000 million worth of its shares. SeA Mechanics Co., Ltd (KOSDAQ:A396300) announces a share repurchase program. Under the program, the company will repurchase up to KRW 2,000 million worth of it's shares pursuant to a contract with Shinhan Securities Co., LTD. The purpose of the share repurchase is to enhance shareholder value and stabilize stock price. The repurchase program will expire on February 5, 2025. As of August 5, 2024, the company had no shares within scope available for dividend and had no shares in treasury through other repurchase. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩2,480, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Electronic industry in South Korea. Total loss to shareholders of 48% over the past year. New Risk • Jun 10
New major risk - Revenue and earnings growth Earnings have declined by 1.9% 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 Earnings have declined by 1.9% per year over the past 5 years. High level of non-cash earnings (33% accrual ratio). Minor Risk Market cap is less than US$100m (₩94.2b market cap, or US$68.4m). Reported Earnings • May 19
First quarter 2024 earnings released: EPS: ₩24.00 (vs ₩2.00 in 1Q 2023) First quarter 2024 results: EPS: ₩24.00 (up from ₩2.00 in 1Q 2023). Revenue: ₩23.6b (up 34% from 1Q 2023). Net income: ₩638.8m (up ₩574.4m from 1Q 2023). Profit margin: 2.7% (up from 0.4% in 1Q 2023). The increase in margin was driven by higher revenue. Reported Earnings • Nov 17
Third quarter 2023 earnings released: EPS: ₩63.00 (vs ₩66.00 in 3Q 2022) Third quarter 2023 results: EPS: ₩63.00 (down from ₩66.00 in 3Q 2022). Revenue: ₩26.1b (up 8.9% from 3Q 2022). Net income: ₩1.68b (down 4.6% from 3Q 2022). Profit margin: 6.4% (down from 7.3% in 3Q 2022). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩4,730, the stock trades at a trailing P/E ratio of 33.7x. Average trailing P/E is 15x in the Electronic industry in South Korea. Total loss to shareholders of 5.3% over the past year. New Risk • Jul 27
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩124.5b (US$98.0m) 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: Major Risks Revenue has declined by 20% over the past year. High level of non-cash earnings (47% accrual ratio). Minor Risk Market cap is less than US$100m (₩124.5b market cap, or US$98.0m). Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩4,700, the stock trades at a trailing P/E ratio of 37.3x. Average trailing P/E is 16x in the Electronic industry in South Korea. Total loss to shareholders of 38% over the past year. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to ₩8,100, the stock trades at a trailing P/E ratio of 56.1x. Average trailing P/E is 16x in the Electronic industry in South Korea. Total returns to shareholders of 21% over the past year. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩6,050, the stock trades at a trailing P/E ratio of 42.9x. Average trailing P/E is 12x in the Electronic industry in South Korea. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩4,995, the stock trades at a trailing P/E ratio of 33.9x. Average trailing P/E is 10x in the Electronic industry in South Korea. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 19% share price decline to ₩5,830, the stock trades at a trailing P/E ratio of 39.5x. Average trailing P/E is 11x in the Electronic industry in South Korea. Buying Opportunity • Jul 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 7.2%. The fair value is estimated to be ₩8,027, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last year. Earnings per share has grown by 26%.