New Risk • May 24
New major risk - Revenue and earnings growth Earnings have declined by 3.4% 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 3.4% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (1.4% net profit margin). Market cap is less than US$100m (₩128.4b market cap, or US$84.5m). New Risk • Apr 04
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: 1.4% Last year net profit margin: 2.6% 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: Minor Risks Profit margins are more than 30% lower than last year (1.4% net profit margin). Market cap is less than US$100m (₩136.3b market cap, or US$90.2m). 공시 • Mar 07
Daesung Holdings Co., Ltd., Annual General Meeting, Mar 27, 2026 Daesung Holdings Co., Ltd., Annual General Meeting, Mar 27, 2026, at 09:00 Tokyo Standard Time. Location: conference room, 86, jangchungdan-ro, jung-gu, seoul South Korea New Risk • Aug 24
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. New Risk • Aug 20
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩139.0b (US$99.4m) 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩11,120, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 6x in the Gas Utilities industry in South Korea. Total loss to shareholders of 83% over the past three years. 공시 • Mar 07
Daesung Holdings Co., Ltd., Annual General Meeting, Mar 28, 2025 Daesung Holdings Co., Ltd., Annual General Meeting, Mar 28, 2025, at 11:00 Tokyo Standard Time. Location: auditorium, 85, myeongdeok-ro, jung-gu, daegu South Korea Buy Or Sell Opportunity • Oct 23
Now 21% overvalued Over the last 90 days, the stock has fallen 4.8% to ₩7,980. The fair value is estimated to be ₩6,621, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 47%. Buy Or Sell Opportunity • Sep 25
Now 21% overvalued Over the last 90 days, the stock has fallen 9.6% to ₩7,990. The fair value is estimated to be ₩6,621, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 47%. Buy Or Sell Opportunity • Aug 06
Now 20% overvalued Over the last 90 days, the stock has fallen 13% to ₩7,960. The fair value is estimated to be ₩6,621, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 59%. New Risk • Jul 22
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩138.4b (US$99.8m) 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: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.3% net profit margin). Market cap is less than US$100m (₩138.4b market cap, or US$99.8m). New Risk • May 21
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: 1.3% Last year net profit margin: 11% 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 Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.3% net profit margin). 공시 • Mar 26
Daesung Holdings Co., Ltd. (KOSE:A016710) announces an Equity Buyback for KRW 2,000 million worth of its shares. Daesung Holdings Co., Ltd. (KOSE:A016710) announces a share repurchase program. Under the program, the company will repurchase up to KRW 2,000 million worth of its shares, pursuant to a contract with NH Investment & Securities Co., Ltd. The purpose of the program is to stabilize stock price and to improve the shareholder value. The program will expire on September 25, 2024. As of March 24, 2024, the company had no shares in treasury within scope available for dividend and under other acquisitions. Reported Earnings • Mar 22
Full year 2023 earnings released: EPS: ₩9,558 (vs ₩225 in FY 2022) Full year 2023 results: EPS: ₩9,558 (up from ₩225 in FY 2022). Revenue: ₩1.22t (down 2.9% from FY 2022). Net income: ₩153.8b (up ₩150.2b from FY 2022). Profit margin: 13% (up from 0.3% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩250 per share at 2.5% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 26 April 2024. Payout ratio is a comfortable 2.8% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (10%). Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩225 (vs ₩1,040 in FY 2021) Full year 2022 results: EPS: ₩225 (down from ₩1,040 in FY 2021). Revenue: ₩1.25t (up 34% from FY 2021). Net income: ₩3.62b (down 78% from FY 2021). Profit margin: 0.3% (down from 1.8% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 150% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩250 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 28 April 2023. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 0.2%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (3.2%). Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced 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: Insufficient board refreshment. 공시 • Sep 07
An unknown buyer agreed to acquire 3% stake in Seoul City Gas Co., Ltd. (KOSE:A017390) from Daesung Holdings Co., Ltd. (KOSE:A016710) for KRW 35.6 billion. An unknown buyer agreed to acquire 3% stake in Seoul City Gas Co., Ltd. (KOSE:A017390) from Daesung Holdings Co., Ltd. (KOSE:A016710) for KRW 35.6 billion on August 26, 2022. Transaction is expected to be closed on August 26, 2022. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced 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: Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩250 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 April 2022. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 0.5%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (4.5%). Reported Earnings • May 23
First quarter 2021 earnings released: EPS ₩928 (vs ₩992 in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2021 results: Revenue: ₩335.7b (down 2.3% from 1Q 2020). Net income: ₩14.9b (down 6.5% from 1Q 2020). Profit margin: 4.4% (down from 4.6% in 1Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 62% per year, which means it is tracking significantly ahead of earnings growth. 공시 • Mar 10
Daesung Holdings Co., Ltd., Annual General Meeting, Mar 29, 2021 Daesung Holdings Co., Ltd., Annual General Meeting, Mar 29, 2021, at 11:00 Korea Standard Time. Is New 90 Day High Low • Feb 20
New 90-day high: ₩28,100 The company is up 15% from its price of ₩24,400 on 20 November 2020. The South Korean market is up 19% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Gas Utilities industry, which is up 12% over the same period. Is New 90 Day High Low • Jan 04
New 90-day high: ₩25,350 The company is up 30% from its price of ₩19,500 on 06 October 2020. The South Korean market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Gas Utilities industry, which is up 14% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩250 Per Share Will be paid on the 22nd of April to those who are registered shareholders by the 29th of December. The trailing yield of 1.0% is below the top quartile of South Korean dividend payers (2.6%), and is lower than industry peers (1.8%). Is New 90 Day High Low • Dec 07
New 90-day high: ₩25,000 The company is up 49% from its price of ₩16,800 on 08 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Gas Utilities industry, which is up 19% over the same period. Is New 90 Day High Low • Nov 10
New 90-day high: ₩23,450 The company is up 65% from its price of ₩14,250 on 12 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Gas Utilities industry, which is up 17% over the same period. Valuation Update With 7 Day Price Move • Oct 13
Market bids up stock over the past week After last week's 15% share price gain to ₩22,500, the stock is trading at a trailing P/E ratio of 29.7x, up from the previous P/E ratio of 25.7x. This compares to an average P/E of 13x in the Gas Utilities industry in South Korea. Total returns to shareholders over the past three years are 190%. Is New 90 Day High Low • Oct 07
New 90-day high: ₩19,850 The company is up 48% from its price of ₩13,450 on 09 July 2020. The South Korean market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Gas Utilities industry, which is up 7.0% over the same period.