[Click e-Stock] "InziSoft, Continued Expansion of Shareholder Returns"

KB Securities analyzed on November 20 that shareholder returns at InziSoft are expected to continue increasing. The company did not provide an investment opinion or a target price.

InziSoft operates a cloud-based electronic document service (Q-Service) business aimed at promoting the expansion of digital financial work and ODS activation in financial institutions. Lim Sangkuk, a researcher at KB Securities, stated, "If the 4.5-day workweek becomes a reality, InziSoft is expected to benefit, as it operates businesses in cloud-based electronic document services and robotic solutions for automating financial work."

He added, "Currently, the company's market capitalization stands at 72.6 billion won. As of the end of the third quarter, the retention ratio is 4,062%, with cash and liquid financial assets totaling 47 billion won. Considering the value of its technology and sales capabilities, the company appears to be significantly undervalued. On November 4, InziSoft signed a trust contract to purchase 1.5 billion won worth of treasury shares, and upon completion of the additional buyback, the treasury shareholding ratio is expected to increase to the 21% range."

He further explained, "The government is currently pursuing legal revisions to address the 'Korea Discount,' including the cancellation of treasury shares. With treasury shares at 18.9% and retained earnings of approximately 65.4 billion won, these resources can be used for future treasury share cancellations, bonus issues, or as funds for mergers and acquisitions." He added, "Securing growth drivers through M&A based on strong asset value will be important, and whether InziSoft can transition from a value stock to a growth stock will be a key point going forward."