New Risk • Jun 01
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 45% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 11% per year over the past 5 years. Minor Risks High level of debt (45% net debt to equity). Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩56.7b market cap, or US$37.6m). Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to ₩5,610, the stock trades at a trailing P/E ratio of 12.6x. Average trailing P/E is 11x in the Professional Services industry in South Korea. Total returns to shareholders of 57% over the past three years. New Risk • Mar 31
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.1% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 10% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₩63.4b market cap, or US$41.3m). Reported Earnings • Mar 20
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: ₩444 (down from ₩494 in FY 2024). Revenue: ₩107.5b (up 14% from FY 2024). Net income: ₩6.29b (down 10% from FY 2024). Profit margin: 5.9% (down from 7.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 8.9%. Earnings per share (EPS) also missed analyst estimates by 51%. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 11% per year. Annonce • Mar 10
HCT Co., Ltd., Annual General Meeting, Mar 24, 2026 HCT Co., Ltd., Annual General Meeting, Mar 24, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 449-79, seoicheon-ro, majang-myeon, gyeonggi-do, icheon South Korea Valuation Update With 7 Day Price Move • Mar 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩5,010, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 12x in the Professional Services industry in South Korea. Total returns to shareholders of 33% over the past three years. New Risk • Nov 25
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.5% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 8.0% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.6% net profit margin). Market cap is less than US$100m (₩86.5b market cap, or US$59.0m). Declared Dividend • Nov 16
Dividend of ₩89.05 announced Shareholders will receive a dividend of ₩89.05. Ex-date: 29th December 2025 Payment date: 17th April 2026 Dividend yield will be 0.7%, which is lower than the industry average of 3.9%. Sustainability & Growth Dividend is well covered by both earnings (9% earnings payout ratio) and cash flows (7% cash payout ratio). The dividend has decreased over the past 66 years, indicating a lack of growth and stability in payments. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩13,460, the stock trades at a trailing P/E ratio of 13.6x. Average forward P/E is 15x in the Professional Services industry in South Korea. Total returns to shareholders of 77% over the past three years. New Risk • Aug 05
New major risk - Revenue and earnings growth Earnings have declined by 6.1% 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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.1% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.5% net profit margin). Market cap is less than US$100m (₩83.5b market cap, or US$60.2m). New Risk • Jul 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.5% net profit margin). Market cap is less than US$100m (₩82.3b market cap, or US$59.6m). Valuation Update With 7 Day Price Move • Jul 29
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to ₩11,970, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 17x in the Professional Services industry in Asia. Total returns to shareholders of 11% over the past three years. New Risk • May 21
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: 6.5% Last year net profit margin: 11% 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 Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.5% net profit margin). Market cap is less than US$100m (₩65.6b market cap, or US$47.3m). Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩9,780, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 9x in the Professional Services industry in South Korea. Total loss to shareholders of 27% over the past three years. Reported Earnings • Mar 22
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: ₩990 (down from ₩1,041 in FY 2023). Revenue: ₩94.4b (up 27% from FY 2023). Net income: ₩7.01b (down 4.9% from FY 2023). Profit margin: 7.4% (down from 9.9% in FY 2023). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 22%. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 9.7% growth forecast for the Professional Services industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 10% per year. Annonce • Feb 28
HCT Co., Ltd. (KOSDAQ:A072990) announces an Equity Buyback for KRW 3,000 million worth of its shares. HCT Co., Ltd (KOSDAQ:A072990) announces a share repurchase program. Under the program, the company will repurchase up to KRW 3,000 million worth of its shares according to the contract with NH Investment & Securities Co.,Ltd. The purpose of the program is stock price stability and shareholder value enhancement. The program will run until August 26, 2025. As of February 26, 2025, the company had 0 and 0 treasury stock holdings within the available dividend range acquisition and other acquisitions, respectively. Annonce • Feb 20
HCT Co., Ltd., Annual General Meeting, Mar 26, 2025 HCT Co., Ltd., Annual General Meeting, Mar 26, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 449-79, seoicheon-ro, gyeonggi-do, icheon South Korea New Risk • May 21
New major risk - Revenue and earnings growth Earnings have declined by 1.0% 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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.0% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩72.3b market cap, or US$53.1m). Reported Earnings • Mar 23
Full year 2023 earnings released Full year 2023 results: Revenue: ₩74.1b (up 10% from FY 2022). Net income: ₩7.37b (up 27% from FY 2022). Profit margin: 9.9% (up from 8.6% in FY 2022). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩11,140, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Professional Services industry in South Korea. Total loss to shareholders of 12% over the past three years. New Risk • Aug 17
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 41% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (41% net debt to equity). Profit margins are more than 30% lower than last year (6.8% net profit margin). Market cap is less than US$100m (₩57.8b market cap, or US$43.2m). Reported Earnings • Aug 16
Second quarter 2023 earnings released: EPS: ₩343 (vs ₩122 in 2Q 2022) Second quarter 2023 results: EPS: ₩343 (up from ₩122 in 2Q 2022). Revenue: ₩18.8b (up 13% from 2Q 2022). Net income: ₩2.53b (up 202% from 2Q 2022). Profit margin: 13% (up from 5.0% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. New Risk • Jun 12
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.9% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. 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 (4.5% net profit margin). Market cap is less than US$100m (₩50.5b market cap, or US$39.2m). Reported Earnings • Mar 23
Full year 2022 earnings released: EPS: ₩792 (vs ₩1,535 in FY 2021) Full year 2022 results: EPS: ₩792 (down from ₩1,535 in FY 2021). Revenue: ₩67.1b (up 6.1% from FY 2021). Net income: ₩5.79b (down 45% from FY 2021). Profit margin: 8.6% (down from 17% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has remained flat. Upcoming Dividend • Dec 21
Upcoming dividend of ₩69.24 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 12 April 2023. Payout ratio is a comfortable 7.2% but the company is not cash flow positive. Trailing yield: 0.9%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (2.3%). Upcoming Dividend • Dec 22
Upcoming dividend of ₩49.50 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 11 April 2022. Payout ratio is a comfortable 2.8% but the company is not cash flow positive. Trailing yield: 0.3%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (1.4%). Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment improved over the past week After last week's 16% share price gain to ₩17,450, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 20x in the Professional Services industry in South Korea. Total returns to shareholders of 204% over the past three years. Reported Earnings • Mar 21
Full year 2020 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩53.4b (up 13% from FY 2019). Net income: ₩10.3b (up 68% from FY 2019). Profit margin: 19% (up from 13% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 15
New 90-day high: ₩15,350 The company is up 28% from its price of ₩11,980 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 Professional Services industry, which is up 10.0% over the same period. Annonce • Feb 10
HCT Co., Ltd, Annual General Meeting, Mar 25, 2021 HCT Co., Ltd, Annual General Meeting, Mar 25, 2021, at 10:00 Korea Standard Time. Is New 90 Day High Low • Jan 04
New 90-day high: ₩15,000 The company is up 24% from its price of ₩12,079 on 06 October 2020. The South Korean market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 15% over the same period. Is New 90 Day High Low • Jan 02
New 90-day high: ₩14,750 The company is up 26% from its price of ₩11,732 on 29 September 2020. The South Korean market is up 23% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 19% over the same period. Is New 90 Day High Low • Dec 31
New 90-day high: ₩14,750 The company is up 26% from its price of ₩11,732 on 29 September 2020. The South Korean market is up 22% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Professional Services industry, which is up 19% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩29.75 Per Share Will be paid on the 10th of April to those who are registered shareholders by the 29th of December. The trailing yield of 0.2% is below the top quartile of South Korean dividend payers (2.6%), and is lower than industry peers (1.3%). Is New 90 Day High Low • Dec 08
New 90-day high: ₩13,250 The company is up 3.0% from its price of ₩12,900 on 09 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Professional Services industry, which is up 16% over the same period.