KOSDAQIT & Software389680

Udmtek

₩2,955▼ 1.01%2026-10-02 close

Market Cap

₩24.6B

Turnover

₩200M

Volume

70,000 shares

Shares out.

8.3M

PER

—

PBR

1.8×

EPS

-₩284

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Contract Wins Amid Administrative Issue Designation

UDMTek is pursuing business expansion through new contracts including Korea GM and an NVIDIA-based digital twin deal, but faces a dual burden of shrinking revenue and an administrative issue designation triggered by market capitalization falling below the required threshold.

1
2025 revenue fell sharply to KRW 3.21 billion year-on-year, while operating loss widened to KRW 3.65 billion
2
Designated as an administrative issue stock on August 10, 2026 due to market cap shortfall, with potential delisting grounds if the requirement is not met within 90 trading days
3
Signed an OPTRA Platform supply contract for Korea GM and an NVIDIA Isaac Sim-based digital twin supply contract in 2026
4
Operating cash flow swung from positive in 2023 to negative in both 2024 and 2025, warranting attention to the pace of cash burn
5
A par-value consolidation from KRW 100 to KRW 500 in May 2026 reduced outstanding shares from roughly 41.59 million to about 8.32 million

Business structure

Founded in 2007, UDMTek is an AI-based diagnostic solutions provider for automation equipment, built around its proprietary Machine Language Processing (MLP) technology that interprets PLC control logic using AI methods.

Its core products include OPTRA Black-box, which diagnoses equipment status and supports predictive maintenance, the real-time monitoring solution OPTRA Tracker, and the integrated control platform OPTRA Platform.

According to a Daishin Securities report, as of the first quarter of 2025 revenue mix was 60.1% from OPTRA Black-box and 19.5% from OPTRA Tracker, with the remainder from service revenue.

Its customer base has included the Hyundai-Kia group and overseas plants of LG Energy Solution, and it signed a contract with SK Chemical for a generative AI-based Job Safety Analysis (JSA) automation system.

In 2026 the company appeared to expand into automotive and robotics applications: in June it signed a contract via Wintec S.A. to supply the OPTRA Platform to Korea GM's plant, and in May it signed a contract with a mobility software and advanced manufacturing company to supply a next-generation digital twin platform based on NVIDIA Isaac Sim, aiming to build an integrated platform extendable to collaborative and humanoid robots.

The company listed on KOSDAQ in November 2024 through a merger with Daishin Balance 13th SPAC.

In the smart-factory and digital-twin space, UDMTek competes against various domestic and overseas industrial software providers, positioning its direct interpretation of PLC control programs via MLP technology as a point of differentiation.

Earnings trend

Quarterly revenue · Operating profit

₩800M-₩1.3B25Q2₩500M-₩1B25Q3₩1.3B-₩200M25Q4₩900M-₩600M26Q1₩700M-₩700M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩7.4B₩200M2023₩6.1B-₩2B2024₩3.2B-₩3.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩800M	-₩1.3B	−167.2%
2025Q3	₩500M	-₩1B	−203.8%
2025Q4	₩1.3B	-₩200M	−18.5%
2026Q1	₩900M	-₩600M	−62.8%
2026Q2	₩700M	-₩700M	−93.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2023	₩7.4B	₩200M	-₩5.8B	2.1%	−141.5%	102.6%
2024	₩6.1B	-₩2B	-₩5.2B	−33.1%	−40.0%	39.3%
2025	₩3.2B	-₩3.6B	-₩3.5B	−113.5%	−33.3%	41.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

On a confirmed consolidated basis, revenue declined for three consecutive years, from KRW 7.42 billion in 2023 to KRW 6.07 billion in 2024 and KRW 3.21 billion in 2025.

Operating profit was positive at KRW 155 million in 2023 (operating margin of 2.1%) but turned to an operating loss of KRW 2.01 billion in 2024 (margin of -33.1%) and widened further to KRW 3.65 billion in 2025 (margin of -113.5%), with losses expanding even as revenue shrank.

Net loss attributable to owners was KRW 5.79 billion in 2023, KRW 5.20 billion in 2024 and KRW 3.50 billion in 2025 — a somewhat smaller absolute loss over time, but still substantial.

On a quarterly basis, revenue of KRW 789 million and an operating loss of KRW 1.32 billion in the second quarter of 2025 gave way to revenue falling to KRW 479 million and an operating loss of KRW 976 million in the third quarter, before revenue recovered to KRW 1.31 billion in the fourth quarter with the operating loss narrowing sharply to KRW 243 million.

However, losses widened again in the first quarter of 2026 (revenue of KRW 890 million, operating loss of KRW 559 million) and the second quarter (revenue of KRW 743 million, operating loss of KRW 693 million), suggesting the fourth-quarter improvement may have been temporary.

The combined net loss attributable to owners over the most recent four quarters (third quarter 2025 through second quarter 2026) stood at about KRW 2.40 billion.

Operating cash flow deteriorated from a positive KRW 281 million in 2023 to negative KRW 1.34 billion in 2024 and negative KRW 2.79 billion in 2025, indicating an accelerating pace of cash burn.

Total equity rose to KRW 13.0 billion in 2024 on IPO proceeds before falling to KRW 10.5 billion in 2025 due to accumulated losses, while the debt ratio dropped from 102.6% in 2023 to 39.3% in 2024 and 41.7% in 2025, remaining at a lower level since the listing.

Industry analysis

The smart-factory and industrial AI diagnostics market in which UDMTek operates is expected to grow on the back of manufacturing digital transformation and rising demand for predictive maintenance.

Aging automation equipment combined with a shortage of skilled labor is increasing demand for diagnostic and monitoring solutions that detect equipment anomalies in advance and reduce downtime.

However, this market tends to move with the capital expenditure cycles of upstream industries such as batteries and semiconductors, and the company itself has cited reduced capital investment in sectors such as secondary batteries as a factor behind its 2024 earnings deterioration.

More recently, the combination of generative AI, digital twins, and simulation platforms such as NVIDIA's has shifted market attention toward integrated manufacturing AI platforms that extend to collaborative and humanoid robots.

Domestically, large-conglomerate-affiliated IT service providers and specialized smart-factory SMEs form a similar competitive landscape, while overseas the company appears to be attempting localization through proof-of-concept projects with manufacturers in the eastern United States.

UDMTek positions its MLP technology, which directly interprets PLC control logic, as a differentiator and is seeking to expand applications across automotive, secondary battery, semiconductor, shipbuilding, power generation, and defense sectors.

However, given the company's small scale, its results remain heavily dependent on whether large customers allocate budgets or adopt its projects, an important variable in understanding its position within the industry.

Outlook

The company has shown intent to expand its business by disclosing a series of contracts with large customers in 2026.

In May it signed a contract with a mobility software and advanced manufacturing company to supply a next-generation digital twin platform based on NVIDIA Isaac Sim, extending into motion verification and process simulation for collaborative and industrial robots, and stated it plans to present an integrated platform structure extendable to humanoid robots in the future.

In June it signed a contract via Wintec S.A. to supply the OPTRA Platform to a Korea GM plant, describing it as a foothold for expansion into the global automotive manufacturing market.

In the same month, it also signed a Smart Air Care Platform-based operation management service contract, with the contract value equivalent to 31.84% of the prior year's revenue.

However, how much of these new contracts will translate into actual revenue and profit needs to be confirmed through earnings disclosures from the third quarter of 2026 onward.

The company has not officially provided specific quantitative revenue or profit guidance, and since it was designated an administrative issue stock in August 2026 due to a market capitalization shortfall, it must meet the market cap requirement (KRW 20 billion through the end of 2026, rising to KRW 30 billion from 2027) for at least 45 trading days within the following 90 trading days to have the designation lifted.

Progress on overseas marketing through global exhibitions such as CES and proof-of-concept projects with U.S. manufacturers will also serve as indicators for gauging future business expansion.

Valuation

PER

—

PBR

1.8×

ROE

-22.7%

EPS

-₩284

BPS

₩1,122

Dividend per share

₩0

UDMTek has recorded continuous net losses over the past three years, making profit-based valuation metrics difficult to derive, and the shares trade at a premium relative to net asset value.

There is some divergence between the company's self-calculated price-to-book ratio and the KRX-based figure, but both indicate that the stock trades at a premium rather than a discount to net assets. The company has no dividend payment history, so dividend-related metrics carry little meaning.

Its profit structure shifted from an operating profit in 2023 to operating losses in 2024 and 2025, with the loss scale widening even as revenue declined, which underlies the steady decline in total equity — the basis for net asset value — since the listing.

The administrative issue designation triggered by the market capitalization shortfall in August 2026 needs to be considered alongside earnings metrics as a structural variable when interpreting valuation.

Whether new large-customer contract wins translate into an improved profit outlook remains the key variable determining the sustainability of the current trading level relative to net asset value.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-05

Bull factors

New references secured in global automotive and mobility sectors

Between May and June 2026 the company signed both an NVIDIA Isaac Sim-based digital twin contract and an OPTRA Platform supply contract for Korea GM in succession, broadening its reference base within the global automotive and mobility customer segment.

These contracts could serve as a bridgehead for additional orders within the same industry. In particular, the platform is positioned as extendable to collaborative and humanoid robots, leaving room for application in the robotics industry.

Debt ratio has remained at a stable level since listing

The debt ratio has stayed at a relatively low level since the influx of IPO proceeds, moving from 102.6% in 2023 to 39.3% in 2024 and 41.7% in 2025. This can act as a buffer in terms of financial flexibility.

However, it should be viewed alongside the fact that total equity itself continues to shrink due to accumulated losses.

Multi-industry application attempts based on differentiated MLP technology

The MLP technology, which directly interprets PLC control logic, is presented as a differentiator from solutions that merely collect data.

The company continues efforts to expand application of this technology across sectors including automotive, secondary batteries, semiconductors, shipbuilding, power generation, and defense.

It is also broadening into new application areas such as industrial safety, as seen in its JSA automation contract with SK Chemical.

Bear factors

Administrative issue designation due to market cap shortfall raises delisting risk

On August 10, 2026, the company was designated an administrative issue stock due to a market capitalization shortfall, and if it fails to meet the market cap requirement (KRW 20 billion through the end of 2026, then KRW 30 billion) for at least 45 trading days within 90 trading days of designation, grounds for delisting could arise.

This is a structural risk directly tied to continued listing status, beyond simple earnings weakness. New contract wins alone are unlikely to immediately resolve this requirement.

Revenue has declined for three straight years while operating losses have widened

Revenue fell by more than half, from KRW 7.42 billion in 2023 to KRW 3.21 billion in 2025, and operating profit over the same period shifted from a surplus to a loss of KRW 3.65 billion. Losses widened again in the first and second quarters of 2026, indicating the fourth-quarter improvement was not sustained. If fixed cost burdens persist against a shrinking revenue base, a recovery in profitability could be delayed.

Deteriorating operating cash flow accelerates cash burn

Operating cash flow moved from a positive KRW 281 million in 2023 to negative KRW 1.34 billion in 2024 and negative KRW 2.79 billion in 2025, with the deficit widening each year. This suggests the pace at which new contracts convert into actual cash inflows has not kept up with the pace of widening losses. The possibility of additional fundraising or cost restructuring cannot be ruled out.

Risk factors

Listing maintenance risk

If the market cap requirement is not met for at least 45 trading days within 90 trading days following the August 2026 administrative issue designation, grounds for delisting could arise. This risk is directly tied to stock price and market cap levels, independent of business performance or momentum. Investors need to continuously monitor progress toward meeting the requirement for lifting the designation.

Profitability and cash flow risk

Operating and net losses have persisted for three consecutive years, and operating cash flow has also remained negative in both 2024 and 2025, indicating continued cash burn. The timing and scale at which new contracts will translate into actual revenue and profit improvement remain uncertain. The need for additional external financing could arise.

Customer and order concentration risk

Given the company's small scale, a single large contract can have an outsized impact on results, and in some cases contract counterparties are not disclosed due to confidentiality requests, limiting transparency in verifying order details.

Since reduced investment in specific upstream industries such as secondary batteries has previously been cited as a cause of earnings deterioration, earnings volatility tied to upstream industry investment cycles could remain significant going forward.

What to watch next

Mid-November 2026
The third-quarter 2026 earnings disclosure will show whether the new Korea GM and NVIDIA-related contracts are actually reflected in revenue and profit.
During the fourth quarter of 2026 (around the 90-trading-day mark after the administrative issue designation)
Whether market capitalization has met the deregistration threshold (KRW 20 billion) for at least 45 trading days is the key item to confirm for continued listing status.
Ongoing disclosure monitoring
Progress on the installation and operation of the OPTRA Platform at Korea GM and any follow-on contracts related to the NVIDIA Isaac Sim-based digital twin project should be monitored through ad hoc disclosures.
January 2027 (exhibition schedule including CES 2027)
As with past CES participation, whether new products are unveiled or discussions with overseas customers progress at international exhibitions could serve as an indicator of the pace of overseas market development.

Overall view

Backed by its specialized AI-based diagnostic technology for automation equipment, UDMTek is attempting to expand its business through a series of significant new contracts including Korea GM and an NVIDIA-based digital twin deal.

However, confirmed financials show revenue declining for three consecutive years from KRW 7.42 billion in 2023 to KRW 3.21 billion in 2025, operating profit shifting from a surplus to a loss of KRW 3.65 billion over the same period, and operating cash flow continuing to deteriorate.

In the first and second quarters of 2026, the fourth-quarter improvement failed to continue, with losses widening again.

Adding to this, the August 2026 administrative issue designation due to a market capitalization shortfall introduced a structural variable directly tied to continued listing status, contingent on meeting requirements within 90 trading days.

The debt ratio remaining at a relatively low level since listing serves as a buffer for financial stability, but this should be considered alongside the ongoing decline in total equity from accumulated losses.

Whether new large-customer contract wins translate into actual revenue and profit improvement, and whether the administrative issue designation is lifted, remain the most important items to confirm going forward.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.