New Risk • Mar 20
New major risk - Revenue and earnings growth Earnings have declined by 1.3% 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 1.3% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (dividend per share is over 9x cash flows per share). Profit margins are more than 30% lower than last year (2.0% net profit margin). Market cap is less than US$100m (₩37.9b market cap, or US$25.3m). 공고 • Feb 24
Cubic Korea Inc., Annual General Meeting, Mar 24, 2026 Cubic Korea Inc., Annual General Meeting, Mar 24, 2026, at 09:01 Tokyo Standard Time. Location: auditorium, 39, salmak-gil, danwon-gu, gyeonggi-do, ansan South Korea Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: ₩117 (vs ₩56.00 in 3Q 2024) Third quarter 2025 results: EPS: ₩117 (up from ₩56.00 in 3Q 2024). Revenue: ₩56.9b (down 3.6% from 3Q 2024). Net income: ₩1.90b (up 109% from 3Q 2024). Profit margin: 3.3% (up from 1.5% in 3Q 2024). The increase in margin was driven by lower expenses. 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 8% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 19
Second quarter 2025 earnings released: EPS: ₩66.00 (vs ₩206 in 2Q 2024) Second quarter 2025 results: EPS: ₩66.00 (down from ₩206 in 2Q 2024). Revenue: ₩62.0b (down 7.9% from 2Q 2024). Net income: ₩1.07b (down 68% from 2Q 2024). Profit margin: 1.7% (down from 5.0% in 2Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • May 20
First quarter 2025 earnings released: EPS: ₩150 (vs ₩141 in 1Q 2024) First quarter 2025 results: EPS: ₩150 (up from ₩141 in 1Q 2024). Revenue: ₩60.1b (flat on 1Q 2024). Net income: ₩2.44b (up 6.6% from 1Q 2024). Profit margin: 4.1% (up from 3.8% in 1Q 2024). 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 15% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 20
Full year 2024 earnings released: EPS: ₩597 (vs ₩509 in FY 2023) Full year 2024 results: EPS: ₩597 (up from ₩509 in FY 2023). Revenue: ₩252.1b (flat on FY 2023). Net income: ₩9.70b (up 17% from FY 2023). Profit margin: 3.8% (up from 3.3% in FY 2023). Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. 공고 • Feb 28
Cubic Korea Inc., Annual General Meeting, Mar 25, 2025 Cubic Korea Inc., Annual General Meeting, Mar 25, 2025, at 09:00 Tokyo Standard Time. Location: auditorium, 39, salmak-gil, danwon-gu, gyeonggi-do, ansan South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩70.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 15 April 2025. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 3.1%. Lower than top quartile of South Korean dividend payers (3.9%). Lower than average of industry peers (3.9%). Declared Dividend • Nov 28
Dividend of ₩70.00 announced Shareholders will receive a dividend of ₩70.00. Ex-date: 27th December 2024 Payment date: 15th April 2025 Dividend yield will be 3.1%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (13% earnings payout ratio) but 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 36% per year over the past 5 years and payments have been stable during that time. Earnings per share has grown by 13% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 20
Third quarter 2024 earnings released: EPS: ₩56.00 (vs ₩110 in 3Q 2023) Third quarter 2024 results: EPS: ₩56.00 (down from ₩110 in 3Q 2023). Revenue: ₩59.1b (down 6.9% from 3Q 2023). Net income: ₩906.9m (down 49% from 3Q 2023). Profit margin: 1.5% (down from 2.8% in 3Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩2,225, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 12x in the Commercial Services industry in South Korea. Total loss to shareholders of 46% over the past three years. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: ₩141 (vs ₩130 in 1Q 2023) First quarter 2024 results: EPS: ₩141 (up from ₩130 in 1Q 2023). Revenue: ₩59.8b (up 1.9% from 1Q 2023). Net income: ₩2.29b (up 8.1% from 1Q 2023). Profit margin: 3.8% (up from 3.6% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 19
Full year 2023 earnings released: EPS: ₩509 (vs ₩402 in FY 2022) Full year 2023 results: EPS: ₩509 (up from ₩402 in FY 2022). Revenue: ₩252.1b (up 20% from FY 2022). Net income: ₩8.26b (up 27% from FY 2022). Profit margin: 3.3% (up from 3.1% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 14% per year. Upcoming Dividend • Dec 20
Upcoming dividend of ₩60.00 per share at 2.1% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 10 April 2024. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (3.0%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩110 (vs ₩194 in 3Q 2022) Third quarter 2023 results: EPS: ₩110 (down from ₩194 in 3Q 2022). Revenue: ₩63.5b (up 19% from 3Q 2022). Net income: ₩1.78b (down 44% from 3Q 2022). Profit margin: 2.8% (down from 5.9% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year and the company’s share price has also fallen by 10% per year. Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩2,660, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 19x in the Commercial Services industry in South Korea. Total loss to shareholders of 9.2% over the past three years. Reported Earnings • May 19
First quarter 2023 earnings released: EPS: ₩130 (vs ₩58.00 in 1Q 2022) First quarter 2023 results: EPS: ₩130 (up from ₩58.00 in 1Q 2022). Revenue: ₩58.7b (up 38% from 1Q 2022). Net income: ₩2.12b (up 123% from 1Q 2022). Profit margin: 3.6% (up from 2.2% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Reported Earnings • Mar 14
Full year 2022 earnings released: EPS: ₩402 (vs ₩463 in FY 2021) Full year 2022 results: EPS: ₩402 (down from ₩463 in FY 2021). Revenue: ₩210.0b (up 22% from FY 2021). Net income: ₩6.53b (down 13% from FY 2021). Profit margin: 3.1% (down from 4.4% 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 2% per year but the company’s share price has increased by 15% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩70.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 10 April 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (3.2%). 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. 4 experienced directors. No highly experienced directors. 1 independent director (3 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. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 15% share price gain to ₩2,640, the stock trades at a trailing P/E ratio of 9x. Average trailing P/E is 17x in the Commercial Services industry in South Korea. Total returns to shareholders of 22% over the past three years. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩2,400, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 16x in the Commercial Services industry in South Korea. Total returns to shareholders of 6.7% over the past three years. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment deteriorated over the past week After last week's 19% share price decline to ₩3,120, the stock trades at a trailing P/E ratio of 8.3x. Average trailing P/E is 17x in the Commercial Services industry in South Korea. Total returns to shareholders of 29% over the past three years. 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. 4 experienced directors. No highly experienced directors. 1 independent director (3 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. Upcoming Dividend • Dec 22
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 11 April 2022. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (3.1%). Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩3,710, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 15x in the Commercial Services industry in South Korea. Total returns to shareholders of 78% over the past three years. Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ₩4,650, the stock trades at a trailing P/E ratio of 7.2x. Average trailing P/E is 17x in the Commercial Services industry in South Korea. Total returns to shareholders of 76% over the past three years. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improved over the past week After last week's 24% share price gain to ₩5,460, the stock trades at a trailing P/E ratio of 8.4x. Average trailing P/E is 18x in the Commercial Services industry in South Korea. Total returns to shareholders of 124% over the past three years. Reported Earnings • Mar 18
Full year 2020 earnings released: EPS ₩647 (vs ₩206 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩170.7b (up 8.9% from FY 2019). Net income: ₩10.5b (up 214% from FY 2019). Profit margin: 6.2% (up from 2.1% 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 89% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 09
New 90-day high: ₩4,465 The company is up 20% from its price of ₩3,725 on 11 November 2020. The South Korean market is up 24% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Commercial Services industry, which is up 4.0% over the same period. Is New 90 Day High Low • Jan 21
New 90-day high: ₩4,335 The company is up 22% from its price of ₩3,550 on 23 October 2020. The South Korean market is up 31% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Commercial Services industry, which is up 4.0% over the same period. Is New 90 Day High Low • Jan 05
New 90-day high: ₩4,250 The company is up 13% from its price of ₩3,755 on 07 October 2020. The South Korean market is up 23% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Commercial Services industry, which is flat over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩25.00 Per Share Will be paid on the 3rd of April to those who are registered shareholders by the 29th of December. The trailing yield of 0.6% is below the top quartile of South Korean dividend payers (2.6%), and is lower than industry peers (3.8%). Is New 90 Day High Low • Dec 07
New 90-day high: ₩4,160 The company is up 9.0% from its price of ₩3,800 on 08 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Commercial Services industry, which is down 6.0% over the same period.