Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩819, the stock trades at a trailing P/E ratio of 13.9x. Average trailing P/E is 13x in the IT industry in South Korea. Total loss to shareholders of 40% over the past three years. New Risk • May 23
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 23% 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: Major Risk Share price has been highly volatile over the past 3 months (18% average weekly change). Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (₩32.4b market cap, or US$21.3m). New Risk • Apr 21
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: Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (₩40.8b market cap, or US$27.8m). Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to ₩1,297, the stock trades at a trailing P/E ratio of 36.3x. Average trailing P/E is 19x in the IT industry in South Korea. Negligible returns to shareholders over past three years. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to ₩1,012, the stock trades at a trailing P/E ratio of 28.3x. Average trailing P/E is 17x in the IT industry in South Korea. Total loss to shareholders of 26% over the past three years. Reported Earnings • Mar 20
Full year 2025 earnings released: EPS: ₩36.00 (vs ₩30.00 in FY 2024) Full year 2025 results: EPS: ₩36.00 (up from ₩30.00 in FY 2024). Revenue: ₩200.9b (up 3.3% from FY 2024). Net income: ₩1.12b (up 19% from FY 2024). Profit margin: 0.6% (up from 0.5% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Mar 10
Zungwon En-Sys Inc., Annual General Meeting, Mar 24, 2026 Zungwon En-Sys Inc., Annual General Meeting, Mar 24, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 46, dosan-daero 1-gil, gangnam-gu, seoul South Korea Reported Earnings • Nov 20
Third quarter 2025 earnings released: ₩5.00 loss per share (vs ₩14.00 loss in 3Q 2024) Third quarter 2025 results: ₩5.00 loss per share (improved from ₩14.00 loss in 3Q 2024). Revenue: ₩50.8b (up 24% from 3Q 2024). Net loss: ₩142.1m (loss narrowed 68% from 3Q 2024). Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to ₩1,223, the stock trades at a trailing P/E ratio of 62x. Average trailing P/E is 16x in the IT industry in South Korea. Total loss to shareholders of 39% 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 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. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Market cap is less than US$100m (₩36.2b market cap, or US$26.5m). Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to ₩1,149, the stock trades at a trailing P/E ratio of 58.3x. Average trailing P/E is 14x in the IT industry in South Korea. Total loss to shareholders of 29% over the past three years. Valuation Update With 7 Day Price Move • Apr 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩930, the stock trades at a trailing P/E ratio of 30.9x. Average trailing P/E is 13x in the IT industry in South Korea. Total loss to shareholders of 54% over the past three years. Reported Earnings • Mar 20
Full year 2024 earnings released: EPS: ₩30.00 (vs ₩54.00 in FY 2023) Full year 2024 results: EPS: ₩30.00 (down from ₩54.00 in FY 2023). Revenue: ₩194.5b (up 8.2% from FY 2023). Net income: ₩946.2m (down 44% from FY 2023). Profit margin: 0.5% (down from 0.9% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 29% per year, which means it is performing significantly worse than earnings. Announcement • Mar 08
Zungwon En-Sys Inc., Annual General Meeting, Mar 25, 2025 Zungwon En-Sys Inc., Annual General Meeting, Mar 25, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 46, dosan-daero 1-gil, gangnam-gu, seoul South Korea New Risk • Jan 15
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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 0.1% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (9.6% average weekly change). Market cap is less than US$100m (₩31.7b market cap, or US$21.7m). Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to ₩1,006, the stock trades at a trailing P/E ratio of 26.1x. Average trailing P/E is 17x in the IT industry in South Korea. Total loss to shareholders of 56% over the past three years. New Risk • Dec 07
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended September 2013. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risk Latest financial reports are more than 1 year old (reported September 2013 fiscal period end). Minor Risk Market cap is less than US$100m (₩23.1b market cap, or US$16.2m). Reported Earnings • Nov 20
Third quarter 2024 earnings released: ₩14.00 loss per share (vs ₩3.00 profit in 3Q 2023) Third quarter 2024 results: ₩14.00 loss per share (down from ₩3.00 profit in 3Q 2023). Revenue: ₩41.1b (down 4.3% from 3Q 2023). Net loss: ₩440.0m (down ₩536.3m from profit in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 35% per year, which means it is performing significantly worse than earnings. New Risk • May 23
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 29% 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 22% per year over the past 5 years. High level of non-cash earnings (29% accrual ratio). Minor Risk Market cap is less than US$100m (₩37.6b market cap, or US$27.6m). Reported Earnings • Mar 19
Full year 2023 earnings released: EPS: ₩54.00 (vs ₩38.00 in FY 2022) Full year 2023 results: EPS: ₩54.00 (up from ₩38.00 in FY 2022). Revenue: ₩179.8b (up 8.1% from FY 2022). Net income: ₩1.70b (up 42% from FY 2022). Profit margin: 0.9% (up from 0.7% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 12% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩1,437, the stock trades at a trailing P/E ratio of 62x. Average trailing P/E is 21x in the IT industry in South Korea. Total loss to shareholders of 24% over the past three years. Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩3.00 (vs ₩18.00 loss in 3Q 2022) Third quarter 2023 results: EPS: ₩3.00 (up from ₩18.00 loss in 3Q 2022). Revenue: ₩43.0b (flat on 3Q 2022). Net income: ₩96.3m (up ₩671.8m from 3Q 2022). Profit margin: 0.2% (up from net loss in 3Q 2022). 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 11% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 22
Full year 2022 earnings released: EPS: ₩38.00 (vs ₩25.00 in FY 2021) Full year 2022 results: EPS: ₩38.00 (up from ₩25.00 in FY 2021). Revenue: ₩166.3b (flat on FY 2021). Net income: ₩1.20b (up 48% from FY 2021). Profit margin: 0.7% (up from 0.5% in FY 2021). Over the last 3 years on average, earnings per share has increased by 63% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 15% share price gain to ₩1,535, the stock trades at a trailing P/E ratio of 22.3x. Average trailing P/E is 15x in the IT industry in South Korea. Total returns to shareholders of 11% over the past three years. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩1,430, the stock trades at a trailing P/E ratio of 20.7x. Average trailing P/E is 16x in the IT industry in South Korea. Total loss to shareholders of 2.7% over the past three years. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment deteriorated over the past week After last week's 20% share price decline to ₩1,870, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 15x in the IT industry in South Korea. Total returns to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩1,670, the stock trades at a trailing P/E ratio of 16x. Average trailing P/E is 15x in the IT industry in South Korea. Total returns to shareholders of 2.8% over the past three years. Valuation Update With 7 Day Price Move • Jul 01
Investor sentiment improved over the past week After last week's 60% share price gain to ₩2,050, the stock trades at a trailing P/E ratio of 19.7x. Average trailing P/E is 15x in the IT industry in South Korea. Total returns to shareholders of 18% over the past three years. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment deteriorated over the past week After last week's 20% share price decline to ₩1,500, the stock trades at a trailing P/E ratio of 14.4x. Average trailing P/E is 16x in the IT industry in South Korea. Total loss to shareholders of 14% over the past three years. Is New 90 Day High Low • Feb 26
New 90-day low: ₩1,675 The company is down 11% from its price of ₩1,890 on 27 November 2020. The South Korean market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 12% over the same period. Is New 90 Day High Low • Feb 10
New 90-day low: ₩1,755 The company is down 7.0% from its price of ₩1,895 on 12 November 2020. The South Korean market is up 23% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 12% over the same period. Is New 90 Day High Low • Jan 15
New 90-day high: ₩2,100 The company is up 4.0% from its price of ₩2,020 on 16 October 2020. The South Korean market is up 32% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 20% over the same period. Is New 90 Day High Low • Dec 14
New 90-day low: ₩1,840 The company is down 17% from its price of ₩2,220 on 15 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 2.0% over the same period.