Ask Warren

JONBUR Research · Initiation

Exem · 205100 · Software

Exem: Sharp Drop in Share Price Alongside Strong H1 2026 Earnings, Boosted by Net Income Well Above Operating Income

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Exem, a KOSDAQ-listed software company, closed at ₩1,380 on 2026-10-23, down 36.6% over one year, with a market cap of about ₩93.2B. Trailing earnings to H1 2026 show a 13.9% operating margin and net income of ₩27.5B, far above operating income of ₩6.6B.

Written Oct 26, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

XfWATGr/in@

Thesis

The data supports a picture of a company trading at low multiples (P/E 3.4, P/B 0.7) with a small debt load and positive free cash flow. However, the trailing net income of ₩27.5B is about 4.2 times operating income of ₩6.6B, which suggests non-operating gains; the data does not say what they were, so the P/E of 3.4 may overstate how inexpensive earnings really are. Revenue fell 22.0% in 2025 and operating margin dropped to 7.6%, so the operating trend is mixed. Recent filings show a share buyback decision, a treasury stock acquisition result, a share consolidation decision, a trading halt and several 5%+ holding reports, but the data does not explain the reasons behind them. Foreign ownership fell from 7.6% to 5.3% in 60 days.

Business overview

Exem is a software company listed on KOSDAQ since 2014-11-07 and founded on 2014-08-21, with co-CEOs Jo Jong-am and Ko Pyeong-seok. It has 67,539,374 listed shares. Annual revenue was ₩47.3B in 2021, ₩55.1B in 2022, ₩53.9B in 2023, ₩61.2B in 2024 and ₩47.8B in 2025. Further detail on products or customers is not available in the data.

Financial analysis

These figures come from filed financial statements. Revenue for 2025 was ₩47.8B (down 22.0%), operating income ₩3.7B (7.6% margin) and net income ₩6.6B, with ROE of 5.5%. In 2024, revenue was ₩61.2B, operating income ₩8.8B (14.4% margin) and net income ₩9.1B. In 2022 the operating margin was 22.7% and in 2021 it was 26.0%. Trailing twelve months to H1 2026: revenue ₩47.4B, operating income ₩6.6B (13.9%), net income ₩27.5B (58.1% margin), ROE 22.0%. Balance sheet: cash ₩13.0B, borrowings ₩2.1B, liabilities to equity 10.6%. Free cash flow was ₩12.6B.

Valuation

At present the stock trades at a P/E of 3.4, P/B of 0.7 and P/S of 2.0, with a dividend yield of 3.0% and enterprise value of ₩82.3B. Its own year-end history shows P/E between 13.6 and 20.2 and P/B between 1.1 and 1.7 for 2021-2025, so current multiples are well below that range. Listed peers show P/E of 7.1 to 46.6 and P/B of 0.5 to 2.1 (Hyundai Autoever 46.6 and 4.7; Krafton 10.2 and 1.2; NC 7.1 and 1.2; Netmarble 7.1 and 0.5; PearlAbyss 8.0 and 2.1). The valuation model (5-year discounted cash flow at a 7.4% rate, based on trailing figures to H1 2026) gives a model estimate based on the assumptions shown of ₩1,391 per share in the base case, ₩1,001 in the bear case and ₩2,052 in the bull case, compared with the ₩1,380 share price. This is not a target or a reason to buy or sell.

Catalysts

  • A share buyback decision on 2026-09-18 and a treasury stock acquisition results report on 2026-10-06 point to company share purchases.
  • A share consolidation decision (amended on 2026-08-25) and an extraordinary shareholders' meeting held in September 2026 could change the share structure.
  • Several 5%+ holding reports and insider shareholding reports in September and October 2026 show ownership changes among major holders.
  • A trading halt was recorded on 2026-10-02, though the data does not give the reason.
  • Next financial statements will show whether the H1 2026 net income level is repeated.

Risks

  • Trailing net income is far above operating income, so earnings quality depends on non-operating items the data does not explain.
  • Revenue fell 22.0% in 2025 and operating margin has fallen from 26.0% in 2021 to 7.6% in 2025.
  • The share price is down 36.6% over one year and 4.5% over three months.
  • Foreign ownership dropped from 7.6% to 5.3% over 60 days and foreigners were net sellers of about ₩1.3B over 20 days.
  • No recent news headlines are available in the data, so context for the filings and trading halt is limited.

Closing view

The data shows a company with low multiples, low leverage, positive free cash flow and visible buyback activity, set against falling revenue, a lower operating margin than in earlier years and net income that looks inflated by items outside operations. The model's base estimate of ₩1,391 per share is close to the ₩1,380 price, with a wide bear-to-bull range of ₩1,001 to ₩2,052. Whether the low multiples reflect a real discount or a distorted earnings base cannot be determined from the data provided.

Model estimate of fair value

Bear
₩1,001
-27%
Base
₩1,391
+1%
Bull
₩2,052
+49%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 26, 2026InitiationStart of coverage (reader request)Exem: Sharp Drop in Share Price Alongside Strong H1 2026 Earnings, Boosted by Net Income Well Above Operating Income

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information