KOSDAQ · 071280 · Machinery · ₩071280

Rorze Systems로체시스템즈

071280 · KOSDAQ · ₩071280 · 로체시스템즈

₩8,250▲ ₩320 (4.04%)End-of-day · Oct 29, 2026 · End-of-day prices.

Trade

Sell Buy

Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩14,192

vs the current price (₩8,250)

Enterprise value: ₩165B
Equity value: ₩217B
WACC: 8.3%

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

Why the model and the price differ

The model is 72% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩8,250, the model needs an operating margin of 5.7% every year (it uses 11.8%).
Or revenue growth −21.5 points a year higher than assumed in each of the 5 years.
Today's P/E is 9.2× against a typical 9.5× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear: ₩10,283; +24.6%
Base: ₩14,192; +72.0%
Bull: ₩20,502; +148.5%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (11.8%).

Revenue growth

Revenue growth, year 1-4.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 2-2.8%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 3-0.9%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 41.1%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.8% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (-4.8% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin11.8%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation2.3%
The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Capital spending3%
Money spent on factories, equipment, software and other long-term assets (% of revenue).
Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).
Working capital18.4%
Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.
Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.08%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-29.
Beta0.76
How much the share moves when the market moves: 1 means just like the market.
Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.65, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.58%
The interest rate the company would pay to borrow.
Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026): ₩145B
Net debt (borrowings and leases − cash and deposits): −₩53B
Shares: 15,296,603
Share price: ₩8,250
Market cap: ₩126B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩105B	₩160B	₩125B	₩138B	₩134B	₩133B	₩135B	₩139B
Growth	−27.2%	52.1%	−22.0%	−4.8%	−2.8%	−0.9%	1.1%	3.0%
EBIT	₩12B	₩20B	₩14B	₩16B	₩16B	₩16B	₩16B	₩16B
EBIT margin	11.3%	12.4%	11.6%	11.8%	11.8%	11.8%	11.8%	11.8%
After-tax EBIT	₩8.6B	₩14B	₩10B	₩12B	₩12B	₩11B	₩12B	₩12B
+ Depreciation	₩2.6B	₩2.9B	₩3B	₩3.2B	₩3.1B	₩3.1B	₩3.1B	₩3.2B
− Capital spending	₩332M	₩6.6B	₩5.8B	₩4.2B	₩4B	₩4B	₩4B	₩4.2B
− Working capital	−₩5.2B	₩10B	−₩8.1B	−₩1.3B	−₩713M	−₩223M	₩270M	₩744M
Free cash flow	₩16B	₩169M	₩16B	₩12B	₩11B	₩11B	₩10B	₩10B
Discount factor	—	—	—	0.924	0.853	0.788	0.728	0.672
Present value	—	—	—	₩11B	₩9.6B	₩8.4B	₩7.5B	₩6.8B

Terminal value ₩180B, worth ₩121B today: 74% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

	Low	Typical	High
Price / book (book value ₩9,641 a share)Now 0.86×	₩8,1430.84×	₩11,0011.14×	₩18,5291.92×
Price / earnings (last 12 months: ₩900 a share)Now 9.17×	₩5,5486.16×	₩8,5849.54×	₩18,83520.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,700 a share)Now 4.85×	₩10,4816.16×	₩16,2159.54×	₩35,57920.9×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →	1.0%	1.5%	2.0%	2.5%	3.0%
7.3%	₩14,750	₩15,420	₩16,216	₩17,178	₩18,365
7.8%	₩13,913	₩14,467	₩15,116	₩15,887	₩16,819
8.3%	₩13,192	₩13,655	₩14,192	₩14,821	₩15,568
8.8%	₩12,564	₩12,956	₩13,404	₩13,924	₩14,533
9.3%	₩12,012	₩12,346	₩12,725	₩13,160	₩13,663

Now (TTM)

Market cap: ₩126B
Enterprise value: ₩73B
P/E: 9.2×
P/B: 0.9×
P/S: 0.9×
EV/EBITDA: 3.8×
Dividend yield: 0.0%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩8,830	₩17,690	₩6,230	₩7,970	₩6,090
Market cap	₩135B	₩271B	₩95B	₩122B	₩93B
P/E	11.0×	22.3×	10.7×	6.0×	9.9×
P/B	1.0×	2.2×	0.9×	1.2×	1.1×
P/S	1.1×	1.7×	0.9×	0.8×	0.8×
EV/EBITDA	5.1×	10.7×	4.3×	3.4×	4.2×
Dividend yield	0.0%	0.0%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Rorze Systems	9.2×	0.9×	0.9×	3.8×	0.0%
Doosan Enerbility	200.6×	4.5×	2.0×	—	0.0%
Hanmi Semiconductor	84.5×	25.1×	34.0×	76.1×	0.4%
Jusung Engineering	1,135.2×	13.9×	36.4×	2,185.7×	0.0%
Rainbow Robotics	4,308.5×	55.2×	162.6×	—	0.0%
EO Technics	47.1×	6.8×	11.5×	—	0.0%
Doosan Bobcat	13,805.1×	923.8×	743.7×	—	3.5%
Similar companies (median)	667.9×	19.5×	35.2×	1,130.9×	0.0%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: Rorze Systems / 로체시스템즈 / 071280 / KRX:071280

Source: KRX statistical information