Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩1,240, the stock trades at a trailing P/E ratio of 4.7x. Average trailing P/E is 12x in the Tech industry in South Korea. Total loss to shareholders of 17% over the past three years. New Risk • Apr 04
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 (₩55.9b market cap, or US$37.0m). Announcement • Mar 10
CITECH Co., Ltd., Annual General Meeting, Mar 24, 2026 CITECH Co., Ltd., Annual General Meeting, Mar 24, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 10, chungmin-ro, songpa-gu, seoul South Korea New Risk • Jan 05
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 9.2% 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 (9.2% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (₩75.5b market cap, or US$52.1m). Announcement • Oct 27
CITECH Co., Ltd. announced that it expects to receive KRW 2.000000471 billion in funding from CNC Tech Co.,Ltd and individual investor. CITECH Co., Ltd. announced a private placement to issue 1,833,181 common share at an issue price of KRW 1,091 for the proceeds of KRW 2,000,000,471 on October 27, 2025. Transaction involves participation of CNC Tech Co.,Ltd. for 1,374,886 shares,and Song Yongwook for 458,295 shares as an investor. Transaction is approved by board of directors and expected to close by November 6, 2025. Shares have hold period of 1 year from closing. Announcement • Sep 19
CITECH Co., Ltd. has filed a Follow-on Equity Offering in the amount of KRW 299.999064 million. CITECH Co., Ltd. has filed a Follow-on Equity Offering in the amount of KRW 299.999064 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 280,898
Price\Range: KRW 1068
Transaction Features: Subsequent Direct Listing Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to ₩1,408, the stock trades at a trailing P/E ratio of 55.4x. Average trailing P/E is 6x in the Tech industry in South Korea. Total returns to shareholders of 7.5% over the past three years. New Risk • Apr 18
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: Minor Risks Share price has been volatile over the past 3 months (10% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (₩73.2b market cap, or US$51.5m). Announcement • Mar 18
CITECH Co., Ltd., Annual General Meeting, Mar 31, 2025 CITECH Co., Ltd., Annual General Meeting, Mar 31, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 10, chungmin-ro, songpa-gu, seoul South Korea 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. Large one-off items impacting financial results. Market cap is less than US$100m (₩60.1b market cap, or US$42.2m). New Risk • Nov 07
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 8.1% 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: Major Risk Earnings have declined by 4.9% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.1% average weekly change). Market cap is less than US$100m (₩70.1b market cap, or US$50.1m). Reported Earnings • Aug 16
Second quarter 2024 earnings released: ₩34.00 loss per share (vs ₩77.00 loss in 2Q 2023) Second quarter 2024 results: ₩34.00 loss per share (improved from ₩77.00 loss in 2Q 2023). Revenue: ₩11.6b (down 7.5% from 2Q 2023). Net loss: ₩1.70b (loss narrowed 54% from 2Q 2023). Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Aug 10
CITECH Co., Ltd. announced that it expects to receive KRW 5 billion in funding from K.M.Tech Co. Ltd. CITECH Co., Ltd. announced a private placement of series 11 bearer type private equity convertible bond for an aggregate gross proceeds of KRW 5,000,000,000 on August 9, 2024. The transaction will include participation from new investor K.M.Tech Co. Ltd. The bonds carry coupon rate of 4% and maturity rate of 8% and will mature on August 27, 2027. The bonds are fully convertible into 4,452,359 shares at a conversion price of KRW 1,123 per share. The conversion period starts at August 27, 2025 and ends on July 27, 2027. The transaction is expected to close on August 27, 2024. The transaction has been approved by the board of directors of the company. Reported Earnings • Mar 15
Full year 2023 earnings released: ₩170 loss per share (vs ₩28.00 loss in FY 2022) Full year 2023 results: ₩170 loss per share (further deteriorated from ₩28.00 loss in FY 2022). Revenue: ₩57.1b (flat on FY 2022). Net loss: ₩8.13b (loss widened ₩6.96b from FY 2022). Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. New Risk • Nov 23
New major risk - Revenue and earnings growth Earnings have declined by 1.4% 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 Less than 1 year of cash runway based on free cash flow trend (-₩6.2b free cash flow). Share price has been highly volatile over the past 3 months (14% average weekly change). Earnings have declined by 1.4% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (15% increase in shares outstanding). Market cap is less than US$100m (₩93.9b market cap, or US$72.2m). New Risk • Jul 06
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 Less than 1 year of cash runway based on free cash flow trend (-₩7.7b free cash flow). Share price has been highly volatile over the past 3 months (13% average weekly change). Minor Risk Shareholders have been diluted in the past year (21% increase in shares outstanding). Reported Earnings • May 21
First quarter 2023 earnings released: ₩64.00 loss per share (vs ₩94.00 profit in 1Q 2022) First quarter 2023 results: ₩64.00 loss per share (down from ₩94.00 profit in 1Q 2022). Revenue: ₩15.4b (up 24% from 1Q 2022). Net loss: ₩2.87b (down 178% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 23
Full year 2022 earnings released: ₩16.00 loss per share (vs ₩253 loss in FY 2021) Full year 2022 results: ₩16.00 loss per share (improved from ₩253 loss in FY 2021). Revenue: ₩56.7b (up 20% from FY 2021). Net loss: ₩650.9m (loss narrowed 93% from FY 2021). Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Jun 11
CITECH Co., Ltd. announced that it expects to receive KRW 10 billion in funding from Nucleo Invest Co., Ltd. CITECH Co., Ltd. announced a private placement of series 11 bearer type private equity convertible bond for an aggregate gross proceeds of KRW 10,000,000,000 on June 9, 2022. The transaction will include participation from Nucleo Invest Co., Ltd. The bonds carry coupon rate of 4% and maturity rate of 6% and will mature on July 20, 2025. The bonds are fully convertible into 7,855,459 shares at a conversion price of KRW 1,273 per share. The conversion period starts at July 20, 2023 and ends on June 20, 2025. The transaction is expected to close on July 20, 2022. The transaction has been approved by the board of directors of the company. Reported Earnings • May 22
First quarter 2022 earnings released: EPS: ₩94.00 (vs ₩188 loss in 1Q 2021) First quarter 2022 results: EPS: ₩94.00 (up from ₩188 loss in 1Q 2021). Revenue: ₩12.4b (up 37% from 1Q 2021). Net income: ₩3.70b (up ₩8.29b from 1Q 2021). Profit margin: 30% (up from net loss in 1Q 2021). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Jul 02
CITECH Co., Ltd. announced that it has received KRW 6 billion in funding from Sangsangin Plus Savings Bank, Investment Arm, Sangsangin Savings Bank, Investment Arm On July 1, 2021, CITECH Co., Ltd. closed the transaction. Announcement • Mar 11
CITECH Co., Ltd., Annual General Meeting, Mar 31, 2021 CITECH Co., Ltd., Annual General Meeting, Mar 31, 2021, at 09:00 Korea Standard Time. Is New 90 Day High Low • Jan 29
New 90-day low: ₩867 The company is down 6.0% from its price of ₩921 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 Tech industry, which is up 48% over the same period. Is New 90 Day High Low • Jan 11
New 90-day low: ₩878 The company is down 9.0% from its price of ₩965 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 Tech industry, which is up 47% over the same period. Is New 90 Day High Low • Dec 24
New 90-day low: ₩881 The company is down 2.0% from its price of ₩895 on 25 September 2020. The South Korean market is up 21% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is up 28% over the same period. Announcement • Jul 25
CITECH Co., Ltd. announced that it has received KRW 10.515 billion in funding On July 24, 2020, CITECH Co., Ltd. (KOSE:A004920) closed the transaction. The company amended the terms of the transaction. The company has now issued 1,000,000 common shares at an issue price of KRW 515 per share for gross proceeds of KRW 515,000,000 to Smart Media Representative Co., Ltd in its final tranche. The company has received KRW 10,515,000,000 in the transaction.