[Click e-Stock] "InziSoft, Significantly Undervalued... Corporate Value Revaluation Expected"

On June 25, KB Securities analyzed that the current share price of InziSoft is undervalued and that a future revaluation of its corporate value is expected. The company did not provide an investment opinion or a target price.

Lim Sanguk, a researcher at KB Securities, stated, "InziSoft possesses the best technology in the domestic artificial intelligence (AI) ID recognition (OCR) sector." He added, "The optimal cloud-based electronic document service (QSVC) business, aimed at expanding digital financial operations and activating ODS for financial institutions, is expected to serve as a mid- to long-term growth driver." He further explained, "Through this, it will become possible to handle basic financial institution counter operations anytime and anywhere, regardless of location."

He continued, "In the case of InziSoft, which operates a cloud-based electronic document service (Q-Service) and automated robotic solutions business, the implementation of a 4.5-day workweek is expected to bring substantial benefits." He emphasized, "Amid a rapid aging trend and a gradually shrinking labor force, the value of InziSoft's AI technology and robotic solutions is expected to increase." He added, "Deep learning-based image recognition solutions, electronic documentation technology, and automated robotic solutions are core elements that can improve operational efficiency in the financial sector and serve as substitutes for future labor shortages."

KB Securities stressed that InziSoft is currently significantly undervalued. He said, "Considering a retained earnings ratio of 3,666% and short-term financial assets of 35.9 billion won as of the end of the first quarter, the company is judged to be significantly undervalued." He added, "The renewed push for an IPO by an unlisted subsidiary (an internet banking company) is also a noteworthy point."

He stated, "Various legislative amendments are being promoted, mainly by the ruling party, to address the Korea Discount, such as amendments to the Commercial Act and the principle of retiring treasury shares." He emphasized, "The protection of general shareholders' interests and the activation of shareholder returns are expected." He further added, "With treasury shares accounting for 19.9% and retained earnings of approximately 57.3 billion won, if InziSoft utilizes these for future treasury share retirement, increased dividend payout ratio, bonus issues, or as resources for mergers and acquisitions (M&A), a revaluation of corporate value is anticipated."