Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩24,000, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 8x in the Luxury industry in South Korea. Total returns to shareholders of 61% over the past three years. New Risk • May 28
New major risk - Revenue and earnings growth Earnings have declined by 1.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Upcoming Dividend • Mar 23
Upcoming dividend of ₩700 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 23 April 2026. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.7%). Declared Dividend • Feb 13
Dividend of ₩700 announced Dividend of ₩700 is the same as last year. Ex-date: 30th March 2026 Payment date: 23rd April 2026 Dividend yield will be 3.1%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is covered by both earnings (23% earnings payout ratio) and cash flows (52% cash payout ratio). The dividend has increased by an average of 5.8% per year over the past 6 years and payments have been stable during that time. Earnings per share has grown by 16% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Feb 12
LF Corp. announces Annual dividend, payable on April 23, 2026 LF Corp. announced Annual dividend of KRW 700.0000 per share payable on April 23, 2026, ex-date on March 30, 2026 and record date on March 31, 2026. Announcement • Feb 12
LF Corp., Annual General Meeting, Mar 26, 2026 LF Corp., Annual General Meeting, Mar 26, 2026, at 09:01 Tokyo Standard Time. Location: auditorium, 870, eonju-ro, gangnam-gu, seoul South Korea Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: ₩843 (vs ₩954 in 3Q 2024) Third quarter 2025 results: EPS: ₩843 (down from ₩954 in 3Q 2024). Revenue: ₩398.6b (down 17% from 3Q 2024). Net income: ₩22.7b (down 15% from 3Q 2024). Profit margin: 5.7% (up from 5.6% in 3Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Reported Earnings • Mar 22
Full year 2024 earnings released: EPS: ₩2,694 (vs ₩2,899 in FY 2023) Full year 2024 results: EPS: ₩2,694 (down from ₩2,899 in FY 2023). Revenue: ₩1.96t (up 2.9% from FY 2023). Net income: ₩75.5b (down 8.5% from FY 2023). Profit margin: 3.9% (down from 4.3% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Feb 12
LF Corp., Annual General Meeting, Mar 26, 2025 LF Corp., Annual General Meeting, Mar 26, 2025, at 09:01 Tokyo Standard Time. Location: auditorium, 870, eonju-ro, gangnam-gu, seoul South Korea Buy Or Sell Opportunity • Aug 20
Now 21% overvalued Over the last 90 days, the stock has fallen 8.7% to ₩14,210. The fair value is estimated to be ₩11,758, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.8% over the last 3 years. Earnings per share has grown by 8.4%. New Risk • Mar 26
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.3% Last year net profit margin: 7.7% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.3% net profit margin). Upcoming Dividend • Dec 20
Upcoming dividend of ₩700 per share at 5.1% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 15 April 2024. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 5.1%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.7%). Reported Earnings • Mar 24
Full year 2022 earnings released: EPS: ₩5,351 (vs ₩4,169 in FY 2021) Full year 2022 results: EPS: ₩5,351 (up from ₩4,169 in FY 2021). Revenue: ₩1.97t (up 9.8% from FY 2021). Net income: ₩152.3b (up 28% from FY 2021). Profit margin: 7.7% (up from 6.6% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 16
Now 20% undervalued Over the last 90 days, the stock is up 6.2%. The fair value is estimated to be ₩21,575, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 43%. Buying Opportunity • Feb 28
Now 20% undervalued Over the last 90 days, the stock is up 8.1%. The fair value is estimated to be ₩21,776, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 43%. Buying Opportunity • Feb 07
Now 21% undervalued Over the last 90 days, the stock is up 11%. The fair value is estimated to be ₩21,304, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 43%. Buying Opportunity • Jan 19
Now 22% undervalued Over the last 90 days, the stock is up 8.7%. The fair value is estimated to be ₩21,508, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 43%. Upcoming Dividend • Dec 21
Upcoming dividend of ₩600 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 13 April 2023. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 3.7%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.1%). Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Price Target Changed • Apr 27
Price target increased to ₩24,000 Up from ₩21,000, the current price target is provided by 1 analyst. New target price is 26% above last closing price of ₩19,050. Stock is up 4.1% over the past year. The company is forecast to post earnings per share of ₩3,974 for next year compared to ₩4,169 last year. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 15 April 2022. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 2.9%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.8%). Price Target Changed • Sep 09
Price target increased to ₩24,000 Up from ₩21,000, the current price target is provided by 1 analyst. New target price is 30% above last closing price of ₩18,500. Stock is up 38% over the past year. Major Estimate Revision • May 27
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from ₩1.67b to ₩1.72b. EPS estimate fell from ₩3,086 to ₩2,135 per share. Net income forecast to grow 258% next year vs 47% growth forecast for Luxury industry in South Korea. Consensus price target up from ₩21,000 to ₩22,000. Share price fell 3.3% to ₩19,350 over the past week. Announcement • Apr 29
An undisclosed buyer agreed to acquire 94.4% stake in K&C Music Co., Ltd. from LF Corp. (KOSE:A093050) for KRW 44 billion. An undisclosed buyer agreed to acquire 94.4% stake in K&C Music Co., Ltd. from LF Corp. (KOSE:A093050) for KRW 44 billion on April 27, 2020. As at December 31, 2020, K&C Music Co., Ltd. had total assets of KRW 10.9 billion and total equity of KRW 7.84 billion. For the year ended December 31, 2020, K&C Music Co., Ltd. had revenues of KRW 3.9 billion and net income of KRW 1.1 billion. The transaction was resolved at the Board meeting on April 27, 2021. The expected date of disposal is May 12, 2021. Price Target Changed • Feb 27
Price target raised to ₩21,000 Up from ₩18,833, the current price target is an average from 2 analysts. The new target price is 36% above the current share price of ₩15,450. As of last close, the stock is up 23% over the past year. Is New 90 Day High Low • Feb 18
New 90-day high: ₩16,250 The company is up 5.0% from its price of ₩15,550 on 20 November 2020. The South Korean market is up 22% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩25,491 per share. Announcement • Feb 10
LF Corp., Annual General Meeting, Mar 26, 2021 LF Corp., Annual General Meeting, Mar 26, 2021, at 09:00 Korea Standard Time. Is New 90 Day High Low • Jan 29
New 90-day low: ₩14,400 The company is down 2.0% from its price of ₩14,650 on 30 October 2020. The South Korean market is up 33% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩26,874 per share. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩500 Per Share Will be paid on the 17th of April to those who are registered shareholders by the 29th of December. The trailing yield of 3.4% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (1.4%). Is New 90 Day High Low • Nov 10
New 90-day high: ₩15,950 The company is up 23% from its price of ₩13,000 on 12 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩46,005 per share. Is New 90 Day High Low • Oct 13
New 90-day high: ₩15,000 The company is up 23% from its price of ₩12,200 on 15 July 2020. The South Korean market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩43,174 per share. 