Leader in information systems and UI/UX solutions

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The author is an analyst at NH Investment Securities. His contact information is kyeongkeun.kang@nhqv.com — Ed.

As an IT solution provider, Tomato System mainly focuses on IT systems and UI/UX solutions. Profit margins are improving against the backdrop of increased sales of high-value-added solution products. Going forward, the company plans to: 1) Expand your business model to include cloud-based (SaaS) services 2) Develop AI-powered test automation solutions.

Provider of comprehensive IT solutions

Founded in 2010, Tomato System is an IT solution provider. The main business areas are IT system (eXCampus), UI/UX solution (eXBuilder6) and integrated platform development. Boasting a wide range of IT capabilities from system construction to solution development, he has more than 500 clients including government agencies, listed companies, and financial institutions.

eXCampus is a framework-based IT solution optimally tailored to the university work environment. Backed by a strong track record with over 100 universities in the country, eXCampus is currently the leading university ERP system in Korea. On the other hand, the eXBuilder6 solution helps maximize UI/UX development efficiency by providing optimized support. As a UI/UX development platform based on web standards, eXBuilder6 excels in development convenience, production efficiency, and stability. The adoption of eXBuilder6 is gradually increasing in various fields (from 10 in 2018 to 52 in 2022).

Improve profit structure by increasing sales ratio of high-value-added solutions

Tomato System is shifting its earnings structure from IT to solutions (32.2% cost of sales ratio). Specifically, as solution sales surged from 10.3% in 2020 to 29.4% in 2022, his COGS ratio to sales increased from 77.8% to 52% in the same period. has been improved to Of his 15.8 billion won in funding to be raised in his upcoming IPO, the company plans to allocate his 10.1 billion won to its next research and development. 2) Development of AI-based test automation solution eXTest.

Tomato System is expected to record sales of KRW 31 billion (+14.5% YoY) and operating profit of KRW 8.3 billion (+10.8% YoY, operating margin of 26.6%) in 2023. Based on the IPO price range, the 2023 PER will range from 14.0x to 17.1x. The number of shares offered is 860,000 and the post-IPO free float ratio is 51.8%.

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