Reported Earnings • Mar 20
Full year 2025 earnings released: ₩369 loss per share (vs ₩978 profit in FY 2024) Full year 2025 results: ₩369 loss per share (down from ₩978 profit in FY 2024). Revenue: ₩1.26t (down 8.6% from FY 2024). Net loss: ₩15.4b (down 138% from profit in FY 2024). Over the last 3 years on average, earnings per share has fallen by 16% 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. Buy Or Sell Opportunity • Mar 05
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at ₩2,025. The fair value is estimated to be ₩1,660, however this is not to be taken as a sell 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 17%. Declared Dividend • Feb 23
Dividend increased to ₩125 Dividend of ₩125 is 25% higher than last year. Ex-date: 9th March 2026 Payment date: 1st January 1970 Dividend yield will be 6.1%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is not covered by earnings (146% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 12% per year over the past 6 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 63% to bring the payout ratio under control, which is less than the 65% EPS growth achieved over the last 5 years. New Risk • Nov 23
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 142% The company is paying a dividend despite having no free cash flows. Dividend yield: 5.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain 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 Risks Interest payments are not well covered by earnings (0.5x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 142% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Market cap is less than US$100m (₩83.2b market cap, or US$56.6m). Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩2,485, the stock trades at a trailing P/E ratio of 3.2x. Average trailing P/E is 13x in the Forestry industry in South Korea. Total returns to shareholders of 9.8% over the past three years. Reported Earnings • Mar 20
Full year 2024 earnings released: EPS: ₩978 (vs ₩83.00 in FY 2023) Full year 2024 results: EPS: ₩978 (up from ₩83.00 in FY 2023). Revenue: ₩1.38t (up 4.7% from FY 2023). Net income: ₩40.7b (up ₩37.2b from FY 2023). Profit margin: 2.9% (up from 0.3% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. New Risk • Dec 07
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 Risk Latest financial reports are more than 1 year old (reported September 2013 fiscal period end). 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 (₩81.8b market cap, or US$57.5m). 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 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 (₩87.0b market cap, or US$66.1m). Reported Earnings • Mar 21
Full year 2023 earnings released: EPS: ₩83.00 (vs ₩365 in FY 2022) Full year 2023 results: EPS: ₩83.00 (down from ₩365 in FY 2022). Revenue: ₩1.32t (down 5.5% from FY 2022). Net income: ₩3.47b (down 77% from FY 2022). Profit margin: 0.3% (down from 1.1% in FY 2022). Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩50.00 per share at 2.3% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 08 April 2024. Payout ratio is a comfortable 40% but the company is paying out more than the cash it is generating. Trailing yield: 2.3%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (4.0%). New Risk • Nov 19
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: 0.4% Last year net profit margin: 0.6% 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: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Dividend is not well covered by cash flows (103% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.4% net profit margin). Market cap is less than US$100m (₩89.7b market cap, or US$69.3m). Reported Earnings • Mar 24
Full year 2022 earnings released: EPS: ₩365 (vs ₩153 loss in FY 2021) Full year 2022 results: EPS: ₩365 (up from ₩153 loss in FY 2021). Revenue: ₩1.40t (up 33% from FY 2021). Net income: ₩15.2b (up ₩21.6b from FY 2021). Profit margin: 1.1% (up from net loss in FY 2021). Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩25.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 05 April 2023. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (2.4%). Reported Earnings • Nov 18
Third quarter 2022 earnings released: EPS: ₩295 (vs ₩107 loss in 3Q 2021) Third quarter 2022 results: EPS: ₩295 (up from ₩107 loss in 3Q 2021). Revenue: ₩354.6b (up 53% from 3Q 2021). Net income: ₩12.3b (up ₩16.7b from 3Q 2021). Profit margin: 3.5% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. 1 independent director (8 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: Minority of independent directors. Insufficient board refreshment. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 9 experienced directors. No highly experienced directors. 1 independent director (8 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: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 18
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: ₩153 loss per share (up from ₩925 loss in FY 2020). Revenue: ₩1.06t (up 11% from FY 2020). Net loss: ₩6.37b (loss narrowed 84% from FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 89 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Dec 22
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 06 April 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.8%). Reported Earnings • Mar 21
Full year 2020 earnings released: ₩925 loss per share (vs ₩231 loss in FY 2019) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2020 results: Revenue: ₩949.7b (down 16% from FY 2019). Net loss: ₩38.5b (loss widened 301% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 86% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 15
New 90-day high: ₩3,130 The company is up 33% from its price of ₩2,345 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 Forestry industry, which is up 20% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩50.00 Per Share Will be paid on the 14th of April to those who are registered shareholders by the 29th of December. The trailing yield of 1.8% is below the top quartile of South Korean dividend payers (2.6%), but is in line with industry peers (1.7%). Is New 90 Day High Low • Nov 27
New 90-day high: ₩2,495 The company is up 12% from its price of ₩2,225 on 28 August 2020. The South Korean market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Forestry industry, which is up 5.0% over the same period.