Buy Or Sell Opportunity • May 12
Now 22% undervalued Over the last 90 days, the stock has risen 21% to ₩40,300. The fair value is estimated to be ₩51,708, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 2.9% over the last 3 years. Earnings per share has grown by 7.9%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 6.5% per annum over the same time period. Upcoming Dividend • Mar 23
Upcoming dividend of ₩1,350 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 17 April 2026. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 3.7%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.7%). Reported Earnings • Mar 18
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: ₩4,211 (up from ₩3,895 in FY 2024). Revenue: ₩214.6b (up 13% from FY 2024). Net income: ₩50.3b (up 5.9% from FY 2024). Profit margin: 23% (down from 25% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.0%. Earnings per share (EPS) also surpassed analyst estimates by 2.3%. Revenue is forecast to grow 7.6% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 24
Hy-Lok Corporation, Annual General Meeting, Mar 20, 2026 Hy-Lok Corporation, Annual General Meeting, Mar 20, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 97, noksansandan 27-ro, gangseo-gu, busan South Korea Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩41,100, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 82% over the past three years. Announcement • Feb 21
Hy-Lok Corporation announces Annual dividend, payable on April 17, 2026 Hy-Lok Corporation announced Annual dividend of KRW 1350.0000 per share payable on April 17, 2026, ex-date on March 30, 2026 and record date on March 31, 2026. Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: ₩1,139 (vs ₩742 in 3Q 2024) Third quarter 2025 results: EPS: ₩1,139 (up from ₩742 in 3Q 2024). Revenue: ₩53.8b (up 19% from 3Q 2024). Net income: ₩13.4b (up 50% from 3Q 2024). Profit margin: 25% (up from 20% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 15% per year. Reported Earnings • Mar 19
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: ₩3,895 (up from ₩3,687 in FY 2023). Revenue: ₩190.5b (flat on FY 2023). Net income: ₩47.5b (flat on FY 2023). Profit margin: 25% (in line with FY 2023). Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 7.8%. Revenue is forecast to grow 1.4% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Announcement • Feb 24
Hy-Lok Corporation (KOSDAQ:A013030) announces an Equity Buyback for KRW 15,000 million worth of its shares. Hy-Lok Corporation (KOSDAQ:A013030) announces a share repurchase program. Under the program, the company will repurchase up to KRW 15,000 million worth of its shares pursuant to a contract with Daishin Securities Co., Ltd. The purpose of the program is to stabilize stock prices and enhance shareholder value. The program will expire on August 25, 2025. Announcement • Feb 22
Hy-Lok Corporation, Annual General Meeting, Mar 21, 2025 Hy-Lok Corporation, Annual General Meeting, Mar 21, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 97, noksansandan 27-ro, gangseo-gu, busan South Korea New Risk • Feb 20
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.009% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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. New Risk • Dec 09
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 19
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: ₩3,687 (up from ₩2,633 in FY 2022). Revenue: ₩188.8b (up 3.3% from FY 2022). Net income: ₩47.3b (up 40% from FY 2022). Profit margin: 25% (up from 19% in FY 2022). The increase in margin was primarily driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 20
Upcoming dividend of ₩600 per share at 2.1% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 15 April 2024. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of South Korean dividend payers (3.5%). In line with average of industry peers (2.3%). Announcement • Nov 21
Hy-Lok Corporation (KOSDAQ:A013030) announces an Equity Buyback for KRW 15,000 million worth of its shares. Hy-Lok Corporation (KOSDAQ:A013030) announces a share repurchase program. Under the program, the company will repurchase up to KRW 15,000 million worth of its shares pursuant to a contract with Daishin Securities Co., Ltd. The purpose of the program is to improve shareholder value and to stabilize stock price. The program will expire on May 20, 2024. As of November 19, 2023, the company had no shares in treasury within scope available for dividend and had no shares in treasury through other repurchase. Buying Opportunity • Aug 02
Now 23% undervalued Over the last 90 days, the stock is up 24%. The fair value is estimated to be ₩35,414, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has grown by 57%. Revenue is forecast to grow by 11% in a year. Earnings is forecast to decline by 3.5% in the next year. Buying Opportunity • Jul 14
Now 21% undervalued Over the last 90 days, the stock is up 31%. The fair value is estimated to be ₩35,557, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.8% over the last 3 years. Earnings per share has grown by 57%. Revenue is forecast to grow by 11% in a year. Earnings is forecast to decline by 3.5% in the next year. New Risk • Jun 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 2.1% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (108% cash payout ratio). Shareholders have been diluted in the past year (5.9% increase in shares outstanding). Reported Earnings • May 20
First quarter 2023 earnings released: EPS: ₩973 (vs ₩400 in 1Q 2022) First quarter 2023 results: EPS: ₩973 (up from ₩400 in 1Q 2022). Revenue: ₩45.7b (up 33% from 1Q 2022). Net income: ₩12.5b (up 143% from 1Q 2022). Profit margin: 27% (up from 15% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.9% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 12
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: ₩2,633 (up from ₩1,515 in FY 2021). Revenue: ₩182.9b (up 25% from FY 2021). Net income: ₩33.9b (up 74% from FY 2021). Profit margin: 19% (up from 13% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 5.1%. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 6.2% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. Payout ratio is a comfortable 20% and the cash payout ratio is 99%. Trailing yield: 2.4%. Lower than top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.1%). Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent 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: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improved over the past week After last week's 20% share price gain to ₩21,750, the stock trades at a trailing P/E ratio of 13.9x. Average trailing P/E is 20x in the Machinery industry in South Korea. Total returns to shareholders of 47% over the past three years. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent 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: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Mar 13
Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat Full year 2021 results: EPS: ₩1,515 (up from ₩390 in FY 2020). Revenue: ₩146.7b (up 6.2% from FY 2020). Net income: ₩19.5b (up 269% from FY 2020). Profit margin: 13% (up from 3.8% in FY 2020). The increase in margin was primarily driven by higher revenue. Revenue exceeded analyst estimates by 5.6%. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 3% per year. Upcoming Dividend • Dec 22
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 18 April 2022. Payout ratio is a comfortable 60% and this is well supported by cash flows. Trailing yield: 3.0%. Within top quartile of South Korean dividend payers (2.4%). In line with average of industry peers (2.8%). Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improved over the past week After last week's 15% share price gain to ₩17,000, the stock trades at a trailing P/E ratio of 43.6x. Average forward P/E is 14x in the Machinery industry in South Korea. Total loss to shareholders of 22% over the past three years. Reported Earnings • Mar 17
Full year 2020 earnings released: EPS ₩390 (vs ₩947 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩138.2b (down 2.8% from FY 2019). Net income: ₩5.28b (down 59% from FY 2019). Profit margin: 3.8% (down from 9.1% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 15
New 90-day high: ₩15,500 The company is up 29% from its price of ₩12,050 on 17 November 2020. The South Korean market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 8.0% over the same period. Is New 90 Day High Low • Jan 25
New 90-day high: ₩14,550 The company is up 23% from its price of ₩11,800 on 27 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 Machinery industry, which is up 24% over the same period. 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 3.6% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (2.8%). Is New 90 Day High Low • Dec 15
New 90-day high: ₩14,100 The company is up 10.0% from its price of ₩12,800 on 16 September 2020. The South Korean market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 13% over the same period. Is New 90 Day High Low • Nov 24
New 90-day high: ₩13,400 The company is up 13% from its price of ₩11,850 on 27 August 2020. The South Korean market is up 9.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Machinery industry, which is up 17% over the same period. Is New 90 Day High Low • Oct 29
New 90-day low: ₩11,050 The company is down 16% from its price of ₩13,150 on 31 July 2020. The South Korean market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is down 2.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day low: ₩11,600 The company is down 11% from its price of ₩13,050 on 26 June 2020. The South Korean market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 3.0% over the same period.