[Click eStock] "US Interior Boom... Komeron Benefits from Tape Measure Business"

[Asia Economy Reporter Ji Yeon-jin] Ebest Investment & Securities evaluated on the 6th that Komeuron, a KOSDAQ-listed company, shows characteristics of a small- to mid-cap value stock that is undervalued despite having a strong financial structure and cash flow.

Komeuron's corporate value has been undervalued due to liquidity concerns and low growth expectations in its tape measure business. However, recently, trading volume has surged, and the stock price has risen accordingly. This is interpreted as reflecting expectations for export expansion linked to increased interest in moving and interior design as U.S. housing prices rise. The main export region for Komeuron's tape measure business is the United States, accounting for 54.0% of sales.

Last year, on a separate basis (tape measure business), operating profit was 14.6 billion KRW, a 21.4% increase compared to the previous year, analyzed to have benefited from the growth of global online furniture sales and increased interest in interior design. Analyst Jeong Hong-sik of Ebest Investment & Securities said, "Komeuron's net cash of 56.6 billion KRW, long-term financial assets of 38.7 billion KRW, and investment real estate of 13.3 billion KRW combined total 108.6 billion KRW, which exceeds the company's market capitalization by 14.3%," adding, "Net cash is increasing every year, and last year's confirmed performance period price-to-earnings ratio (PER) was 7.2 times, and price-to-book ratio (PBR) was 0.6 times, indicating undervaluation."