Revenue Doubles with Recycling Business Acquisition; New Segment Turns Profitable, Reducing Operating Loss
ENJET acquired the recycling business division of EMR Co., Ltd. for 8.88 billion KRW in January 2026, adding a new segment; Q1 2026 consolidated revenue reached 4.37 billion KRW (111% YoY increase from 2.07 billion).
The recycling segment contributed 2.92 billion KRW in revenue and 0.33 billion KRW in operating profit, partially offsetting the EHD solution segment's loss of -1.69 billion KRW; consolidated operating loss widened slightly to -1.36 billion KRW (vs. -1.24 billion KRW in Q1 2025).
To fund the acquisition, ENJET took a 5 billion KRW facility loan from Industrial Bank of Korea, used for land and building purchases (appraised at ~14.76 billion KRW); debt ratio increased to 46.3%, but cash holdings of 8.74 billion KRW limit liquidity risk.
The first convertible bond (60 billion KRW face, conversion price 6,664 KRW, maturity 2030) remains outstanding; current stock price (4,930 KRW) is 35% below conversion price, making conversion unlikely, but dilution risk exists if stock price rises.
ENJET holds 726,409 treasury shares (6.8%), now permitted under revised articles for employee compensation, stock options, etc.; no cancellation or disposal planned for the quarter.
Largest shareholder Byun Do-young and 6 others hold 29.33%; all lock-up shares were released (Nov 2025), eliminating overhang risk.
R&D spending was 0.57 billion KRW (13.0% of revenue); 128-nozzle EHD printheads (EHDison-H16/M16) launched and MicroLED repair equipment (AMR/VFF series) in mass production delivery.
[AI Summary]The recycling acquisition diversified revenue and improved profitability, but the core EHD solution business saw a widening operating loss, increasing total losses. In the short term, the new segment's profit contribution and ample cash provide downside support, but investors should monitor potential continued weakness in the core business if industry investment recovery delays.
KOSDAQ Filing Information
Filing: [Correction of Description] Quarterly Report (2026.03)