Smart Radar System, Institutional Demand Forecast ‘Great Success’… What’s the Secret? I Public Offering Stock Report 

The Smart Radar System, which designs a non-uniform array antenna for 4D imaging radar (detection and ranging equipment for radio waves), recorded a subscription price that far exceeded the upper end of the band in the demand forecast of institutional investors in a general public offering.

On the 9th, Smart Radar System announced that it had confirmed the public offering price at 8,000 won per share as a result of forecasting demand from institutional investors in the general public offering in the electronic disclosure of the Financial Supervisory Service. This amount exceeds the upper end of the band (5,800-6,800 won) by 17.6%.

A total of 1922 investors participated in the institutional investor demand forecast, recording a competition rate of 1813.42 to 1. As for the requested price, 94.7% of the total offered an amount exceeding the upper end of the band. There were also 617 places that offered more than 8,000 won, which exceeded the final offering price.

A total of 2.22 million stocks to be listed this time are all new stocks. If general investors are allocated 25% and institutional investors 75%, and all stocks are subscribed through public offering, the smart radar system will secure 17.76 billion won.

Of this, 17.1 billion won, minus the cost of issuance, will be used for research and development (11.9 billion won), facility funds (1.6 billion won), and operating funds (3.6 billion won).

 Radar on the ‘mobility boom’… 안전놀이터the secret to box office success is ‘high discount rate’Smart Radar System is a company that designs non-uniform array antennas, which are the core of 4D imaging radar, and makes real-time radar signal processing technology.

The products and technologies this company makes are used in autonomous driving and drones in mobility, anti-drone for military purposes, healthcare equipment in non-mobility, energy saving equipment, and smart city systems. It has domestic and foreign customers, and two-thirds of its sales last year were generated through exports.

It’s not yet at the stage of making a profit. Consolidated performance at the end of last year recorded sales of KRW 4 billion, operating loss of KRW 5.5 billion, and net loss of KRW 7.7 billion. In the first quarter of last year, sales were 800 million won, and operating loss and net loss were 1.5 billion won and 1.4 billion won, respectively.

However, the investment industry seems to view the growth potential of the smart radar system as high. The company makes self-driving ( RETINA-4FN ), drone ( RETINA-4AM ), and healthcare ( RETINA-4SN ), and there are many data that show that the growth potential of the autonomous driving market is high and there is a lot of room for application in the non-mobility field. It comes from a market research firm.

The price to earnings ratio ( PER ) was applied to calculate the stock price of Smart Radar System. Although there is no profit yet, based on potential growth potential, it is assumed that by 2025, sales will be 78.2 billion won, operating profit will be 16.9 billion won, and net profit will be 17.4 billion won. Motrex, Younghwa Tech, and Unique were selected as

smart radar system PER comparison companies, respectively. All three companies focus on electric parts for automobiles. Although they are not related to radar, Smart Radar System was selected as a comparative group in that it provides electric parts to automotive OEMs . The average PER

of the three companies as of the latest 4 quarters is 17.74 times, and based on this, the enterprise value of Smart Radar System is evaluated at KRW 177.1 billion. Based on the 15,042,340 shares issued, the valuation per share was calculated at 11,773 won, and the company applied a discount rate of 50.73 to 42.24% to set the public offering price band. The success in predicting institutional investor demand seems to be due to the high discount rate based on the valuation per share. The general investor public offering of the Smart Radar System will be held for two days from the 10th to the next day. The representative manager is Daishin Securities.

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