New Risk • May 28
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 Risk High level of non-cash earnings (22% accrual ratio). Minor Risk Market cap is less than US$100m (₩86.1b market cap, or US$57.3m). Board Change • May 06
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. 1 independent director (2 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Mar 04
Itcencts Co.,Ltd., Annual General Meeting, Mar 31, 2026 Itcencts Co.,Ltd., Annual General Meeting, Mar 31, 2026, at 09:30 Tokyo Standard Time. Location: conference room, 117, gwacheon-daero 12-gil, gyeonggi-do, gwacheon South Korea Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩737, the stock trades at a trailing P/E ratio of 5.2x. Average trailing P/E is 18x in the IT industry in South Korea. Total loss to shareholders of 8.7% over the past three years. Reported Earnings • Nov 19
Third quarter 2025 earnings released: EPS: ₩103 (vs ₩37.00 in 3Q 2024) Third quarter 2025 results: EPS: ₩103 (up from ₩37.00 in 3Q 2024). Revenue: ₩258.8b (up 13% from 3Q 2024). Net income: ₩12.5b (up 178% from 3Q 2024). Profit margin: 4.8% (up from 2.0% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. New Risk • Aug 21
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: 0.9% Last year net profit margin: 1.9% 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 High level of non-cash earnings (31% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (0.9% net profit margin). Market cap is less than US$100m (₩74.0b market cap, or US$52.9m). New Risk • Mar 27
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 35% 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 Risk High level of non-cash earnings (35% accrual ratio). Minor Risk Market cap is less than US$100m (₩69.5b market cap, or US$47.3m). Announcement • Feb 28
Comtec Systems Co.,Ltd., Annual General Meeting, Mar 27, 2025 Comtec Systems Co.,Ltd., Annual General Meeting, Mar 27, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 117, gwacheon-daero 12-gil, gyeonggi-do, gwacheon South Korea Announcement • Nov 06
Secucen Co., Ltd. (KOSDAQ:A232830) agreed to acquire 97.2% stake in C Platform Co. Ltd from Ssangyong Information & Communications Corp. (KOSDAQ:A010280) and Comtec Systems Co.,Ltd. for KRW 10.6 billion. Secucen Co., Ltd. (KOSDAQ:A232830) agreed to acquire 97.2% stake in C Platform Co. Ltd from Ssangyong Information & Communications Corp. (KOSDAQ:A010280) and Comtec Systems Co.,Ltd. for KRW 10.6 billion on November 5, 2024.
The expected completion of the transaction is November 5, 2024. 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 Risk Market cap is less than US$100m (₩68.4b market cap, or US$52.0m). New Risk • Mar 30
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: 0.4% Last year net profit margin: 3.4% 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 High level of non-cash earnings (58% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (0.4% net profit margin). Market cap is less than US$100m (₩85.2b market cap, or US$63.3m). New Risk • Jul 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 8.0% 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 High level of non-cash earnings (53% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.0% average weekly change). Market cap is less than US$100m (₩108.3b market cap, or US$85.4m). Valuation Update With 7 Day Price Move • May 30
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩995, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 21x in the IT industry in South Korea. Total loss to shareholders of 17% over the past three years. Reported Earnings • Apr 01
Full year 2022 earnings released: EPS: ₩201 (vs ₩28.00 in FY 2021) Full year 2022 results: EPS: ₩201 (up from ₩28.00 in FY 2021). Revenue: ₩709.8b (up 86% from FY 2021). Net income: ₩24.3b (up ₩21.9b from FY 2021). Profit margin: 3.4% (up from 0.6% in FY 2021). Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Feb 06
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩883, the stock trades at a trailing P/E ratio of 30.5x. Average trailing P/E is 24x in the IT industry in South Korea. Total loss to shareholders of 33% over the past three years. Announcement • Dec 06
Comtec Systems Co.,Ltd. (KOSE:A031820) agreed to acquire 855,481 shares of Sufi Itcen Holdings Co., Ltd. for approximately KRW 19.365 billion. Comtec Systems Co.,Ltd. (KOSE:A031820) agreed to acquire 855,481 shares of Sufi Itcen Holdings Co., Ltd. for approximately KRW 19.365 billion on December 5, 2022. Post completion, Comtec Systems Co.,Ltd. will own 1,710,962 shares amounting to 100% stake in Sufi Itcen Holdings Co., Ltd. During the year ended 2021, Sufi Itcen Holdings Co., Ltd. reported total assets of KRW 125.87 billion and net income of KRW 15.054 billion. As of December 5, 2022, the board of directors of Comtec Systems Co.,Ltd. approved the transaction. The transaction is expected to complete on December 5, 2022. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. 1 independent director (2 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. 1 independent director (2 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Apr 03
Full year 2021 earnings released: EPS: ₩28.00 (vs ₩10.00 loss in FY 2020) Full year 2021 results: EPS: ₩28.00 (up from ₩10.00 loss in FY 2020). Revenue: ₩382.5b (up 60% from FY 2020). Net income: ₩2.38b (up ₩3.05b from FY 2020). Profit margin: 0.6% (up from net loss in FY 2020). Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment improved over the past week After last week's 17% share price gain to ₩1,475, the stock trades at a trailing P/E ratio of 60.4x. Average trailing P/E is 25x in the IT industry in South Korea. Total returns to shareholders of 42% over the past three years. Announcement • Mar 13
Comtec Systems Co.,Ltd., Annual General Meeting, Mar 29, 2021 Comtec Systems Co.,Ltd., Annual General Meeting, Mar 29, 2021, at 09:00 Korea Standard Time. Is New 90 Day High Low • Jan 29
New 90-day low: ₩1,445 The company is down 2.0% from its price of ₩1,480 on 30 October 2020. The South Korean market is up 33% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 23% over the same period. Is New 90 Day High Low • Jan 11
New 90-day low: ₩1,470 The company is down 17% from its price of ₩1,765 on 13 October 2020. The South Korean market is up 29% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 21% over the same period. Is New 90 Day High Low • Dec 07
New 90-day high: ₩1,835 The company is up 32% from its price of ₩1,385 on 08 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 IT industry, which is up 12% over the same period. Is New 90 Day High Low • Sep 28
New 90-day high: ₩1,635 The company is up 29% from its price of ₩1,270 on 30 June 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 IT industry, which is up 5.0% over the same period.