Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩32,700, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 9x in the Construction industry in South Korea. Total returns to shareholders of 19% over the past three years. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩40,450, the stock trades at a trailing P/E ratio of 7.8x. Average trailing P/E is 11x in the Construction industry in South Korea. Total returns to shareholders of 69% over the past three years. Reported Earnings • Mar 18
Full year 2025 earnings released: EPS: ₩5,180 (vs ₩6,780 in FY 2024) Full year 2025 results: EPS: ₩5,180 (down from ₩6,780 in FY 2024). Revenue: ₩423.4b (up 25% from FY 2024). Net income: ₩30.6b (down 24% from FY 2024). Profit margin: 7.2% (down from 12% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. New Risk • Mar 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (24% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (7.2% net profit margin). Announcement • Mar 07
Geumhwa Plant Service & Construction Co., Ltd., Annual General Meeting, Mar 20, 2026 Geumhwa Plant Service & Construction Co., Ltd., Annual General Meeting, Mar 20, 2026, at 10:00 Tokyo Standard Time. Location: seminar room, 878, deokpyeong-ro, chungcheongnam-do, dangjin South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩1,400 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 13 April 2026. Payout ratio is a comfortable 29% but the company is paying out more than the cash it is generating. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.7%). Reported Earnings • Nov 16
Third quarter 2025 earnings released: EPS: ₩527 (vs ₩486 in 3Q 2024) Third quarter 2025 results: EPS: ₩527 (up from ₩486 in 3Q 2024). Revenue: ₩93.8b (up 43% from 3Q 2024). Net income: ₩3.11b (up 8.4% from 3Q 2024). Profit margin: 3.3% (down from 4.4% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 3% per year. Declared Dividend • Nov 08
Dividend of ₩1,400 announced Dividend of ₩1,400 is the same as last year. Ex-date: 29th December 2025 Payment date: 13th April 2026 Dividend yield will be 4.5%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has increased by an average of 1.2% per year over the past 6 years and payments have been stable during that time. The company's earnings per share (EPS) would need to decline by 68% to shift the payout ratio to a potentially unsustainable range, which is more than the 2.8% EPS decline seen over the last 5 years. Announcement • Nov 07
Geumhwa Plant Service & Construction Co., Ltd. announces Annual dividend, payable on April 13, 2026 Geumhwa Plant Service & Construction Co., Ltd. announced Annual dividend of KRW 1400.0000 per share payable on April 13, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: ₩2,337 (vs ₩3,602 in 2Q 2024) Second quarter 2025 results: EPS: ₩2,337 (down from ₩3,602 in 2Q 2024). Revenue: ₩110.6b (up 1.1% from 2Q 2024). Net income: ₩13.8b (down 35% from 2Q 2024). Profit margin: 13% (down from 20% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩31,300, the stock trades at a trailing P/E ratio of 5.1x. Average trailing P/E is 8x in the Construction industry in South Korea. Total returns to shareholders of 19% over the past three years. Reported Earnings • May 20
First quarter 2025 earnings released: EPS: ₩672 (vs ₩1,334 in 1Q 2024) First quarter 2025 results: EPS: ₩672 (down from ₩1,334 in 1Q 2024). Revenue: ₩87.0b (up 30% from 1Q 2024). Net income: ₩3.97b (down 50% from 1Q 2024). Profit margin: 4.6% (down from 12% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. New Risk • Apr 08
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩146.8b (US$99.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 11
Full year 2024 earnings released: EPS: ₩6,780 (vs ₩6,435 in FY 2023) Full year 2024 results: EPS: ₩6,780 (up from ₩6,435 in FY 2023). Revenue: ₩340.2b (flat on FY 2023). Net income: ₩40.0b (up 5.4% from FY 2023). Profit margin: 12% (in line with FY 2023). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Feb 28
Geumhwa Plant Service & Construction Co., Ltd., Annual General Meeting, Mar 14, 2025 Geumhwa Plant Service & Construction Co., Ltd., Annual General Meeting, Mar 14, 2025, at 10:00 Tokyo Standard Time. Location: seminar room, 878, deokpyeong-ro, chungcheongnam-do, dangjin South Korea New Risk • Dec 27
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩145.3b (US$98.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Upcoming Dividend • Dec 20
Upcoming dividend of ₩1,300 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 14 April 2025. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 5.1%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (3.2%). New Risk • Dec 08
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended September 2013. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported September 2013 fiscal period end). High level of non-cash earnings (58% accrual ratio). Declared Dividend • Nov 16
Dividend of ₩1,300 announced Shareholders will receive a dividend of ₩1,300. Ex-date: 27th December 2024 Payment date: 14th April 2025 Dividend yield will be 5.1%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is well covered by both earnings (16% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has not increased over the past 5 years but payments have been stable during that time. Earnings per share has grown by 9.1% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Sep 17
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. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Buy Or Sell Opportunity • Aug 21
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 12% to ₩29,000. The fair value is estimated to be ₩23,647, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 16%. Reported Earnings • Mar 12
Full year 2023 earnings released: EPS: ₩6,435 (vs ₩5,470 in FY 2022) Full year 2023 results: EPS: ₩6,435 (up from ₩5,470 in FY 2022). Revenue: ₩337.6b (up 36% from FY 2022). Net income: ₩38.0b (up 18% from FY 2022). Profit margin: 11% (down from 13% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 5.4% p.a. on average during the next 2 years, compared to a 2.6% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩1,300 per share at 4.9% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 15 April 2024. Payout ratio is a comfortable 24% and the cash payout ratio is 92%. Trailing yield: 4.9%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.9%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩1,169 (vs ₩1,104 in 3Q 2022) Third quarter 2023 results: EPS: ₩1,169 (up from ₩1,104 in 3Q 2022). Revenue: ₩67.8b (up 41% from 3Q 2022). Net income: ₩6.91b (up 6.0% from 3Q 2022). Profit margin: 10% (down from 14% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 2.7% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • Mar 12
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: ₩4,707 (up from ₩3,919 in FY 2021). Revenue: ₩248.3b (up 4.0% from FY 2021). Net income: ₩27.8b (up 20% from FY 2021). Profit margin: 11% (up from 9.7% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) also surpassed analyst estimates by 9.6%. Revenue is forecast to stay flat during the next 2 years compared to a 4.0% growth forecast for the Construction industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩1,300 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 18 April 2023. Payout ratio is a comfortable 37% but the company is not cash flow positive. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (3.2%). 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. 7 experienced directors. No highly experienced directors. No independent directors (7 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. 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. 7 experienced directors. No highly experienced directors. No independent directors (7 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 12
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: ₩3,919 (down from ₩5,034 in FY 2020). Revenue: ₩238.7b (up 1.4% from FY 2020). Net income: ₩23.1b (down 23% from FY 2020). Profit margin: 9.7% (down from 13% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.7%. Earnings per share (EPS) also missed analyst estimates by 15%. Over the next year, revenue is forecast to grow 6.6%, compared to a 10% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 22
Upcoming dividend of ₩1,300 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 18 April 2022. Payout ratio is a comfortable 24% but the company is paying out more than the cash it is generating. Trailing yield: 3.9%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (2.1%). Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improved over the past week After last week's 22% share price gain to ₩40,950, the stock trades at a trailing P/E ratio of 8.3x. Average trailing P/E is 12x in the Construction industry in South Korea. Total returns to shareholders of 26% over the past three years. Reported Earnings • Mar 17
Full year 2020 earnings released: EPS ₩5,034 (vs ₩4,614 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: ₩235.3b (up 12% from FY 2019). Net income: ₩30.0b (up 8.2% from FY 2019). Profit margin: 13% (in line with FY 2019). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Dec 21
New 90-day high: ₩30,150 The company is up 8.0% from its price of ₩27,950 on 22 September 2020. The South Korean market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Construction industry, which is up 23% over the same period. Is New 90 Day High Low • Dec 02
New 90-day high: ₩29,550 The company is up 10.0% from its price of ₩26,900 on 03 September 2020. The South Korean market is also up 10.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Construction industry, which is up 5.0% over the same period.