ENJET's Revenue Surges 111% on Recycling Business Acquisition... But Legacy EHD Losses Persist and CB Dilution Looms
Q1 2026 consolidated revenue reached KRW 4.37B (up 111% YoY from KRW 2.07B), driven by the acquisition of the recycling business. Operating loss widened slightly to KRW 1.36B (vs KRW 1.24B loss in Q1 2025).
In January 2026, ENJET acquired the recycling division of EMR Co., Ltd. for KRW 8.88B in cash (including KRW 6.95B goodwill). The recycling segment contributed KRW 2.92B revenue and KRW 0.33B operating profit in Q1, positively impacting group profitability.
The legacy EHD printing/coating business posted Q1 revenue of KRW 1.45B and an operating loss of KRW 1.69B, as losses persist due to delayed mass production of MicroLED and continued R&D spending.
Outstanding convertible bonds (CB) of KRW 6.0B (conversion price: KRW 6,664). Current stock price of KRW 5,700 offers little conversion incentive, but if the price rises, up to 900,000 new shares (8.4% dilution) could be issued, posing dilution risk.
KRW 5.0B facility loan from Industrial Bank of Korea was drawn for land and building acquisition. Debt-to-equity ratio rose to 46.3% from 26.2% at year-end 2025, increasing financial leverage.
Treasury shares of 726,409 (6.8%) are held, but no separate cancellation or disposal plan was disclosed for the quarter. Lack of shareholder return policy.
Net loss of KRW 1.12B led to negative retained earnings of KRW 1.5B. Total equity stood at KRW 33.1B, with cash of KRW 8.7B maintaining adequate liquidity.
[AI Comprehensive Analysis]The recycling acquisition has diversified revenue and added a profitable segment, but the legacy EHD business's loss-making structure shows no near-term improvement, while increased CB and borrowings heighten financial burden. Investors should monitor potential future capital raises and equity dilution risks; the key lies in medium- to long-term business normalization rather than short-term price momentum.