Buy Or Sell Opportunity • May 11
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 14% to ₩3,965. The fair value is estimated to be ₩3,281, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last year. Earnings per share has declined by 29%. Buy Or Sell Opportunity • Apr 20
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 9.5% to ₩3,795. The fair value is estimated to be ₩3,156, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last year. Earnings per share has declined by 29%. 공시 • Feb 14
Stormtec, Annual General Meeting, Mar 31, 2026 Stormtec, Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 143, hwagok-ro 68-gil, gangseo-gu, seoul South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩150 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 27 April 2026. Payout ratio is a comfortable 65% but the company is not cash flow positive. Trailing yield: 7.9%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (2.9%). New Risk • Nov 30
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: 15% Last year net profit margin: 22% 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 High level of non-cash earnings (22% accrual ratio). Minor Risks Less than 3 years of financial data is available. Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (15% net profit margin). Market cap is less than US$100m (₩98.8b market cap, or US$67.3m). New Risk • Aug 27
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% 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 (25% accrual ratio). Minor Risks Less than 3 years of financial data is available. Dividend is not well covered by cash flows (dividend per share is over 55x cash flows per share). Market cap is less than US$100m (₩101.3b market cap, or US$72.6m). Upcoming Dividend • Aug 04
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 11 August 2025. Payment date: 25 August 2025. Trailing yield: 6.6%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (3.1%). Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩4,270, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 10x in the Consumer Durables industry in South Korea. Total returns to shareholders of 15% over the past year. 공시 • Feb 14
Stormtec, Annual General Meeting, Mar 31, 2025 Stormtec, Annual General Meeting, Mar 31, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 143, hwagok-ro 68-gil, gangseo-gu, seoul South Korea