New Risk • May 28
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 32% 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 Earnings have declined by 20% per year over the past 5 years. High level of non-cash earnings (32% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (1.2% net profit margin). Market cap is less than US$100m (₩18.3b market cap, or US$12.2m). 공시 • Feb 26
Shin Hwa Dynamics Co.,Ltd., Annual General Meeting, Mar 26, 2026 Shin Hwa Dynamics Co.,Ltd., Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 31, beonnyeong 2-ro, danwon-gu, gyeonggi-do, ansan South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 21 April 2026. Trailing yield: 0.6%. Lower than top quartile of South Korean dividend payers (3.6%). Lower than average of industry peers (2.4%). Reported Earnings • Nov 20
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: ₩21.2b (down 27% from 3Q 2024). Net income: ₩760.1m (up ₩2.12b from 3Q 2024). Profit margin: 3.6% (up from net loss in 3Q 2024). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Declared Dividend • Nov 08
Dividend of ₩100.00 announced Shareholders will receive a dividend of ₩100.00. Ex-date: 29th December 2025 Payment date: 21st April 2026 Dividend yield will be 0.6%, which is lower than the industry average of 2.7%. Sustainability & Growth The dividend has not increased over the past 3 years but payments have been stable during that time. New Risk • Aug 20
New major risk - Revenue and earnings growth Earnings have declined by 0.9% 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 0.9% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (₩20.6b market cap, or US$14.7m). 공시 • Feb 25
Shin Hwa Dynamics Co.,Ltd., Annual General Meeting, Mar 26, 2025 Shin Hwa Dynamics Co.,Ltd., Annual General Meeting, Mar 26, 2025, at 10:00 Tokyo Standard Time. Location: seminar room, 31, beonnyeong 2-ro, danwon-gu, gyeonggi-do, ansan South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 18 April 2025. Trailing yield: 0.7%. Lower than top quartile of South Korean dividend payers (3.9%). Lower than average of industry peers (2.9%). Declared Dividend • Nov 27
Dividend of ₩100.00 announced Shareholders will receive a dividend of ₩100.00. Ex-date: 27th December 2024 Payment date: 18th April 2025 Dividend yield will be 0.7%, which is lower than the industry average of 2.7%. Sustainability & Growth The dividend has not increased over the past 2 years but payments have been stable during that time. New Risk • Mar 22
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 Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (₩23.9b market cap, or US$17.8m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩100.00 per share at 0.5% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 24 April 2024. Trailing yield: 0.5%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (2.7%). New Risk • Nov 23
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: 2.5% Last year net profit margin: 8.8% 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 Profit margins are more than 30% lower than last year (2.5% net profit margin). Market cap is less than US$100m (₩25.7b market cap, or US$19.8m). 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. 1 experienced director. 7 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Outside Director Seung-Tae Park was the last independent director to join the board, commencing their role in 1999. 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 09
Investor sentiment improved over the past week After last week's 16% share price gain to ₩37,100, the stock trades at a trailing P/E ratio of 5.2x. Average trailing P/E is 5x in the Metals and Mining industry in South Korea. Total returns to shareholders of 67% over the past three years. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment deteriorated over the past week After last week's 22% share price decline to ₩34,850, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 5x in the Metals and Mining industry in South Korea. Total returns to shareholders of 58% over the past three years. Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improved over the past week After last week's 17% share price gain to ₩35,100, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 5x in the Metals and Mining industry in South Korea. Total returns to shareholders of 55% over the past three years. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ₩32,750, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 6x in the Metals and Mining industry in South Korea. Total returns to shareholders of 44% over the past three years. Valuation Update With 7 Day Price Move • Jun 03
Investor sentiment improved over the past week After last week's 27% share price gain to ₩38,700, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 7x in the Metals and Mining industry in South Korea. Total returns to shareholders of 69% over the past three years. Reported Earnings • May 22
First quarter 2022 earnings released: EPS: ₩1,620 (vs ₩239 in 1Q 2021) First quarter 2022 results: EPS: ₩1,620 (up from ₩239 in 1Q 2021). Revenue: ₩28.3b (up 22% from 1Q 2021). Net income: ₩1.97b (up ₩1.68b from 1Q 2021). Profit margin: 7.0% (up from 1.3% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. 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. 1 experienced director. 7 highly experienced directors. 2 independent directors (6 non-independent directors). Independent Outside Director Seung-Tae Park was the last independent director to join the board, commencing their role in 1999. 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
Inaugural dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 20 April 2022. The company is not currently making a profit and is not cash flow positive. This is the first dividend for Shin Hwa Dynamics since going public. The average dividend yield among industry peers is 2.3%. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩23,600, the stock trades at a trailing P/E ratio of 9.7x. Average trailing P/E is 11x in the Metals and Mining industry in South Korea. Total returns to shareholders of 18% over the past three years. Valuation Update With 7 Day Price Move • Apr 05
Investor sentiment improved over the past week After last week's 31% share price gain to ₩31,200, the stock trades at a trailing P/E ratio of 77.4x. Average trailing P/E is 21x in the Metals and Mining industry in South Korea. Total returns to shareholders of 45% over the past three years. 공시 • Mar 04
Shin Hwa Sil Up Co.,Ltd, Annual General Meeting, Mar 25, 2021 Shin Hwa Sil Up Co.,Ltd, Annual General Meeting, Mar 25, 2021, at 10:00 Korea Standard Time. Is New 90 Day High Low • Jan 20
New 90-day high: ₩23,000 The company is up 8.0% from its price of ₩21,200 on 22 October 2020. The South Korean market is up 28% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 26% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩100.00 Per Share Will be paid on the 20th of April to those who are registered shareholders by the 29th of December. The company last paid an ordinary dividend in March 2010. The average dividend yield among industry peers is 3.1%. Is New 90 Day High Low • Oct 20
New 90-day high: ₩22,050 The company is up 5.0% from its price of ₩21,000 on 22 July 2020. The South Korean market is also up 5.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Metals and Mining industry, which is up 6.0% over the same period.