[Edaily Reporter Kim Hyung-il ] PS Tec. Co., Ltd.(002230)An analysis has concluded that PS Tech is an undervalued stock—with net financial assets exceeding its market capitalization—amid expectations that it will benefit from KoreaElectricPower’s (KEPCO) expanded adoption of its next-generation secure electricity meters (AMIGO) and the mandatory implementation of Zero Energy Buildings (ZEB).

On the 3rd, the Corporate Research Center of the Korea IR Association noted that PSTEC’s net financial assets as of the end of the first quarter of this year stood at 103.2 billion won, exceeding its market capitalization (82.5 billion won), and projected that benefits from the AMIGO transition and the mandatory adoption of ZEBs would serve as drivers of medium- to long-term growth.

The Korea IR Association predicted that PSTEC would benefit as KoreaElectricPower Corporation (KEPCO) plans to effectively standardize low-voltage electricity meters to AMIGO starting next year. The analysis noted that the company is one of the suppliers that participated in joint development and verification and has secured an annual contract worth approximately 17.6 billion won, covering both single-phase and three-phase products.

Furthermore, the council projected that demand for remote meter reading electronic meters and energy management systems will increase as ZEB mandates are expanded. PSTEC was evaluated as a company capable of supplying five types of meters—for electricity, water, hot water, heating, and gas—along with remote meter reading systems (AMR), and is therefore expected to benefit from these developments.

The Korea IR Council projected that PSTEC, which recorded its best-ever performance last year with consolidated revenue of 97.2 billion won and operating profit of 5.3 billion won, will continue its growth trend this year with revenue reaching 106.8 billion won. However, it anticipated that operating profit would decrease slightly to 4.5 billion won due to upfront investments related to the establishment of overseas subsidiaries and the expansion of research and development.

Kwon Ji-seung, a researcher at the Korea IR Association, stated, “The transition to AMIGO and the mandatory adoption of ZEB are factors that will enhance business competitiveness in the medium to long term,” adding, “The current stock price does not even reach the level of net financial assets, indicating that the value of the core business is not fully reflected.”