New Risk • May 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩150.2b (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. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.1x net interest cover). Earnings have declined by 51% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Market cap is less than US$100m (₩150.2b market cap, or US$99.6m). New Risk • Mar 27
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.1x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.1x net interest cover). Earnings have declined by 51% per year over the past 5 years. Minor Risk Paying a dividend despite being loss-making. 공시 • Mar 07
Dongkuk Industries Co., Ltd., Annual General Meeting, Mar 26, 2026 Dongkuk Industries Co., Ltd., Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 29, itaewon-ro, yongsan-gu, seoul South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩130 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 27 April 2026. The company is not currently making a profit but it is cash flow positive. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (2.4%). New Risk • Nov 07
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩145.8b (US$99.9m) 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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 41% per year over the past 5 years. Minor Risks High level of debt (56% net debt to equity). Paying a dividend despite being loss-making. Market cap is less than US$100m (₩145.8b market cap, or US$99.9m). New Risk • Apr 09
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 3.9% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 31% per year over the past 5 years. Reported Earnings • Mar 22
Full year 2024 earnings released: ₩122 loss per share (vs ₩99.00 loss in FY 2023) Full year 2024 results: ₩122 loss per share (further deteriorated from ₩99.00 loss in FY 2023). Revenue: ₩790.3b (up 4.4% from FY 2023). Net loss: ₩6.31b (loss widened 24% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. 공시 • Mar 12
Dongkuk Industries Co., Ltd., Annual General Meeting, Mar 26, 2025 Dongkuk Industries Co., Ltd., Annual General Meeting, Mar 26, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 58, yangpyeong-ro, yeongdeungpo-gu, seoul South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩130 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 21 April 2025. Payout ratio is a comfortable 49% but the company is not cash flow positive. Trailing yield: 2.9%. Lower than top quartile of South Korean dividend payers (3.9%). In line with average of industry peers (2.9%). New Risk • Dec 18
New major risk - Revenue and earnings growth Earnings have declined by 27% 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 Risks Interest payments are not well covered by earnings (0.8x net interest cover). Earnings have declined by 27% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Nov 20
Third quarter 2024 earnings released: EPS: ₩39.00 (vs ₩52.00 in 3Q 2023) Third quarter 2024 results: EPS: ₩39.00 (down from ₩52.00 in 3Q 2023). Revenue: ₩205.9b (up 14% from 3Q 2023). Net income: ₩2.03b (down 24% from 3Q 2023). Profit margin: 1.0% (down from 1.5% in 3Q 2023). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Metals and Mining industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₩5,200, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 12x in the Metals and Mining industry in South Korea. Total returns to shareholders of 55% over the past three years. 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. New Risk • Aug 26
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 23% 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 Risks Interest payments are not well covered by earnings (0.4x net interest cover). High level of non-cash earnings (23% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. New Risk • May 23
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 14% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Dividend per share is over 9x earnings per share. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (9.3% average weekly change). Reported Earnings • Mar 22
Full year 2023 earnings released: ₩99.00 loss per share (vs ₩125 profit in FY 2022) Full year 2023 results: ₩99.00 loss per share (down from ₩125 profit in FY 2022). Revenue: ₩757.0b (down 12% from FY 2022). Net loss: ₩5.11b (down 179% from profit in FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 116 percentage points per year, which is a significant difference in performance. New Risk • Jan 22
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 8.4% 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: Major Risks Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 139% Earnings have declined by 22% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.4% average weekly change). Upcoming Dividend • Dec 20
Upcoming dividend of ₩130 per share at 2.6% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. The company is not currently making a profit and there are not enough cash flows to support it either. Trailing yield: 2.6%. Lower than top quartile of South Korean dividend payers (3.5%). In line with average of industry peers (2.7%). Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to ₩7,680, the stock trades at a trailing P/E ratio of 61.2x. Average trailing P/E is 9x in the Metals and Mining industry in South Korea. Total returns to shareholders of 309% over the past three years. Valuation Update With 7 Day Price Move • Apr 10
Investor sentiment improves as stock rises 34% After last week's 34% share price gain to ₩7,830, the stock trades at a trailing P/E ratio of 62.4x. Average trailing P/E is 9x in the Metals and Mining industry in South Korea. Total returns to shareholders of 324% over the past three years. Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩5,560, the stock trades at a trailing P/E ratio of 30.6x. Average trailing P/E is 7x in the Metals and Mining industry in South Korea. Total returns to shareholders of 171% over the past three years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩130 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. Payout ratio is a comfortable 72% but the company is not cash flow positive. Trailing yield: 3.3%. Within top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (4.4%). 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. 6 experienced directors. 1 highly experienced director. 2 independent directors (5 non-independent directors). Factory Manager and Director Bong-Hyun Kim was the last director to join the board, commencing their role in 2006. 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 • Nov 01
Investor sentiment improved over the past week After last week's 17% share price gain to ₩5,010, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 5x in the Metals and Mining industry in South Korea. Total returns to shareholders of 127% over the past three years. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ₩4,835, the stock trades at a trailing P/E ratio of 17.6x. Average trailing P/E is 5x in the Metals and Mining industry in South Korea. Total returns to shareholders of 124% over the past three years. Valuation Update With 7 Day Price Move • Sep 14
Investor sentiment improved over the past week After last week's 34% share price gain to ₩5,100, the stock trades at a trailing P/E ratio of 18.5x. Average trailing P/E is 6x in the Metals and Mining industry in South Korea. Total returns to shareholders of 123% over the past three years. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment improved over the past week After last week's 20% share price gain to ₩3,755, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 6x in the Metals and Mining industry in South Korea. Total returns to shareholders of 72% 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. 6 experienced directors. 1 highly experienced director. 2 independent directors (5 non-independent directors). Factory Manager and Director Bong-Hyun Kim was the last director to join the board, commencing their role in 2006. 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 ₩130 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 April 2022. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 3.7%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (2.3%). Is New 90 Day High Low • Jan 18
New 90-day low: ₩3,280 The company is down 9.0% from its price of ₩3,585 on 20 October 2020. The South Korean market is up 30% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 25% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩130 Per Share Will be paid on the 20th of April to those who are registered shareholders by the 29th of December. The trailing yield of 3.8% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (3.1%).