New Risk • May 25
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: 1.3% Last year net profit margin: 12% 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 Share price has been highly volatile over the past 3 months (24% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.3% net profit margin). Market cap is less than US$100m (₩40.5b market cap, or US$26.6m). Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩3,535, the stock trades at a trailing P/E ratio of 19.4x. Average trailing P/E is 19x in the Communications industry in South Korea. Total returns to shareholders of 34% over the past three years. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 42% After last week's 42% share price gain to ₩4,655, the stock trades at a trailing P/E ratio of 25.5x. Average trailing P/E is 21x in the Communications industry in South Korea. Total returns to shareholders of 78% over the past three years. New Risk • Apr 03
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 39% 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 Share price has been volatile over the past 3 months (15% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (₩32.1b market cap, or US$21.3m). Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩2,700, the stock trades at a trailing P/E ratio of 9.1x. Average trailing P/E is 13x in the Communications industry in South Korea. Total returns to shareholders of 7.9% over the past three years. New Risk • Mar 24
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 12% 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 (12% average weekly change). Market cap is less than US$100m (₩30.8b market cap, or US$20.6m). Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment improves as stock rises 39% After last week's 39% share price gain to ₩2,715, the stock trades at a trailing P/E ratio of 9.1x. Average trailing P/E is 11x in the Communications industry in South Korea. Total returns to shareholders of 16% over the past three years. Announcement • Mar 05
Frtek Co.Ltd. announces Annual dividend Frtek Co.Ltd. announced Annual dividend of KRW 40.0000 per share, ex-date on December 29, 2025 and record date on December 31, 2025. Announcement • Mar 04
Frtek Co.Ltd., Annual General Meeting, Mar 31, 2026 Frtek Co.Ltd., Annual General Meeting, Mar 31, 2026, at 10:00 Tokyo Standard Time. Location: auditorium, 30, obongsandan 1-ro, gyeonggi-do, uiwang South Korea New Risk • Sep 02
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). Market cap is less than US$100m (₩26.5b market cap, or US$19.0m). Valuation Update With 7 Day Price Move • Sep 02
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩2,325, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 15x in the Communications industry in South Korea. Total loss to shareholders of 34% over the past three years. Valuation Update With 7 Day Price Move • Jun 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩2,165, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 8x in the Communications industry in South Korea. Total loss to shareholders of 39% over the past three years. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩1,660, the stock trades at a trailing P/E ratio of 10.2x. Average trailing P/E is 9x in the Communications industry in South Korea. Total loss to shareholders of 50% over the past three years. Announcement • Mar 01
Frtek Co.Ltd., Annual General Meeting, Mar 31, 2025 Frtek Co.Ltd., Annual General Meeting, Mar 31, 2025, at 10:00 Tokyo Standard Time. Location: auditorium, 30, obongsandan 1-ro, gyeonggi-do, uiwang South Korea New Risk • Dec 09
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: -₩20b 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 Risks Less than 1 year of cash runway based on free cash flow trend (-₩20b free cash flow). Market cap is less than US$10m (₩14.3b market cap, or US$9.94m). New Risk • Dec 07
New minor risk - Financial data availability Less than 3 years of financial data is available. This is considered a minor risk. If the company has been trading for less than 3 years, then it has not had the opportunity to establish a long-term track record. This makes it difficult for investors to assess the true growth potential, sustainability and resilience of the business under different economic conditions. Currently, the following risks have been identified for the company: Minor Risks Less than 3 years of financial data is available. Market cap is less than US$100m (₩14.3b market cap, or US$10.0m). New Risk • Nov 14
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: ₩13.8b (US$9.84m) This is considered a major 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 Risk Market cap is less than US$10m (₩13.8b market cap, or US$9.84m). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.5% net profit margin). New Risk • Sep 09
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: ₩13.4b (US$9.95m) This is considered a major 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 Risk Market cap is less than US$10m (₩13.4b market cap, or US$9.95m). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.5% net profit margin). Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩1,860, the stock trades at a trailing P/E ratio of 4.8x. Average trailing P/E is 12x in the Communications industry in South Korea. Total loss to shareholders of 61% over the past three years. 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. 7 experienced directors. No highly experienced directors. 1 independent director (6 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. 7 experienced directors. No highly experienced directors. 1 independent director (6 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 • Mar 17
Full year 2020 earnings released: ₩343 loss per share (vs ₩149 loss in FY 2019) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2020 results: Revenue: ₩24.4b (down 6.9% from FY 2019). Net loss: ₩3.91b (loss widened 131% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 22% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 09
New 90-day low: ₩5,200 The company is down 12% from its price of ₩5,900 on 09 December 2020. The South Korean market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 11% over the same period. Is New 90 Day High Low • Feb 07
New 90-day low: ₩5,590 The company is down 3.0% from its price of ₩5,740 on 09 November 2020. The South Korean market is up 27% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 11% over the same period. Is New 90 Day High Low • Jan 12
New 90-day high: ₩6,650 The company is up 4.0% from its price of ₩6,390 on 14 October 2020. The South Korean market is up 28% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 7.0% over the same period. Is New 90 Day High Low • Oct 26
New 90-day low: ₩5,050 The company is down 9.0% from its price of ₩5,560 on 28 July 2020. The South Korean market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is down 6.0% over the same period.