Valuation Update With 7 Day Price Move • May 25
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩32,750, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Machinery industry in South Korea. Total loss to shareholders of 13% over the past three years. Major Estimate Revision • May 19
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ₩1.72b to ₩1.64b. EPS estimate also fell from ₩2,423 per share to ₩2,111 per share. Net income forecast to grow 36% next year vs 25% growth forecast for Machinery industry in South Korea. Consensus price target of ₩26,667 unchanged from last update. Share price fell 12% to ₩27,050 over the past week. Declared Dividend • May 15
Final dividend of ₩380 announced Shareholders will receive a dividend of ₩380. Ex-date: 29th June 2026 Payment date: 31st August 2026 Dividend yield will be 3.3%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (64% earnings payout ratio) and cash flows (37% cash payout ratio). The dividend has decreased over the past 76 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 56% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Aankondiging • Mar 17
SFA Engineering Corporation, Annual General Meeting, Mar 31, 2026 SFA Engineering Corporation, Annual General Meeting, Mar 31, 2026, at 10:30 Tokyo Standard Time. Location: conference room, 25, dongtansunhwan-daero 29-gil, gyeonggi-do, hwaseong South Korea Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₩27,700, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 18x in the Machinery industry in South Korea. Total loss to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩49,936 per share. Price Target Changed • Feb 13
Price target increased by 7.0% to ₩26,750 Up from ₩25,000, the current price target is an average from 4 analysts. New target price is 13% below last closing price of ₩30,750. Stock is up 62% over the past year. The company is forecast to post earnings per share of ₩1,783 next year compared to a net loss per share of ₩2,642 last year. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩29,700, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 17x in the Machinery industry in South Korea. Total loss to shareholders of 18% over the past three years. Upcoming Dividend • Jun 20
Upcoming dividend of ₩270 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 22 August 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.6%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.0%). Declared Dividend • May 29
Dividend of ₩270 announced Shareholders will receive a dividend of ₩270. Ex-date: 27th June 2025 Payment date: 22nd August 2025 Dividend yield will be 1.3%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. However, the dividend is well covered by cash flows (3% cash payout ratio). The dividend has decreased over the past 66 years, indicating a lack of growth and stability in payments. Price Target Changed • May 23
Price target decreased by 11% to ₩24,250 Down from ₩27,400, the current price target is an average from 4 analysts. New target price is 16% above last closing price of ₩20,900. Stock is down 26% over the past year. The company is forecast to post earnings per share of ₩2,868 next year compared to a net loss per share of ₩2,642 last year. Aankondiging • May 18
SFA Engineering Corporation (KOSDAQ:A056190) announces an Equity Buyback for KRW 10,000 million worth of its shares. SFA Engineering Corporation (KOSDAQ:A056190) announces a share repurchase program. Under the program, the company will repurchase up to KRW 10,000 million worth of its shares according to the contract with NH INVESTMENT & SECURITIES CO.,LTD. The purpose of the program is stock price stability and increase in shareholder value. The program will expire on May 15, 2026. As of May 15, 2025, the company had 7,386,380 shares and 0 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. Reported Earnings • Mar 25
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: ₩2,642 loss per share (down from ₩1,278 profit in FY 2023). Revenue: ₩2.05t (up 9.9% from FY 2023). Net loss: ₩84.6b (down 297% from profit in FY 2023). Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) also missed analyst estimates significantly. Revenue is forecast to grow 7.4% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 49 percentage points per year, which is a significant difference in performance. Aankondiging • Mar 14
SFA Engineering Corporation, Annual General Meeting, Mar 31, 2025 SFA Engineering Corporation, Annual General Meeting, Mar 31, 2025, at 10:30 Tokyo Standard Time. Location: conference room, 25, dongtansunhwan-daero 29-gil, gyeonggi-do, hwaseong South Korea Aankondiging • Mar 13
SFA Engineering Corporation (KOSDAQ:A056190) announces an Equity Buyback for KRW 15,000 million worth of its shares. SFA Engineering Corporation (KOSDAQ:A056190) announces a share repurchase program. Under the program, the company will repurchase up to KRW 15,000 million worth of its shares according to the contract with NH INVESTMENT & SECURITIES CO.,LTD. The purpose of the program is stock price stability and increase in shareholder value. The program will expire on March 12, 2026. As of March 12, 2025, the company had 6,190,670 and 0 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. Upcoming Dividend • Dec 20
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 16 April 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.8%. Lower than top quartile of South Korean dividend payers (3.9%). Lower than average of industry peers (2.0%). Aankondiging • Dec 06
SFA Engineering Corporation (KOSDAQ:A056190) announces an Equity Buyback for KRW 20,000 million worth of its shares. SFA Engineering Corporation (KOSDAQ:A056190) announces a share repurchase program. Under the program, the company will repurchase up to KRW 20,000 million worth of its shares according to the contract with NH Investment & Securities Co., Ltd. The purpose of the program is stock price stability and increase in shareholder value. The program will expire on December 5, 2025. As of December 5, 2024, the company had 5,497,314 and 0 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. Declared Dividend • Nov 21
First half dividend of ₩100.00 announced Shareholders will receive a dividend of ₩100.00. Ex-date: 27th December 2024 Payment date: 16th April 2025 Dividend yield will be 1.7%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by earnings (24% earnings payout ratio) but not covered by cash flows (148% cash payout ratio). The dividend has decreased over the past 56 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 202% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Nov 16
Consensus EPS estimates have been downgraded. The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from ₩2.28b to ₩2.12b. Now expected to report a loss of ₩556 per share instead of ₩3,733 per share profit previously forecast. Machinery industry in South Korea expected to see average net income growth of 52% next year. Consensus price target down from ₩38,800 to ₩32,000. Share price fell 14% to ₩17,850 over the past week. Price Target Changed • Nov 15
Price target decreased by 9.8% to ₩34,800 Down from ₩38,600, the current price target is an average from 5 analysts. New target price is 95% above last closing price of ₩17,850. Stock is down 39% over the past year. The company posted earnings per share of ₩1,193 last year. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩21,500, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 10x in the Machinery industry in South Korea. Total loss to shareholders of 35% over the past three years. Aankondiging • Sep 25
SFA Engineering Corporation (KOSDAQ:A056190) announces an Equity Buyback for KRW 20,000 million worth of its shares. SFA Engineering Corporation (KOSDAQ:A056190) announces a share repurchase program. Under the program, the company will repurchase up to KRW 20,000 million worth of its shares according to the contract with NH Investment & Securities Co., Ltd. The purpose of the program is stock price stability and increase in shareholder value. The program will expire on September 24, 2025. As of September 24, 2024, the company had 4,401,085 and 0 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. Aankondiging • Aug 28
Creative & Innovative System Corporation (KOSDAQ:A222080) agreed to acquire SNU Precision Co., Ltd. (KOSDAQ:A080000) from SFA Engineering Corporation (KOSDAQ:A056190), Koo Byung-wan, Dongjin Kim, Suha Kim and others for KRW 72 billion. Creative & Innovative System Corporation (KOSDAQ:A222080) agreed to acquire SNU Precision Co., Ltd. (KOSDAQ:A080000) from SFA Engineering Corporation (KOSDAQ:A056190), Koo Byung-wan, Dongjin Kim, Suha Kim and others for KRW 72 billion on August 27, 2024. Transaction is subject to Creative & Innovative System Corporation's shareholder approval.
The expected completion of the transaction is December 1, 2024. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: ₩739 (vs ₩363 in 2Q 2023) Second quarter 2024 results: EPS: ₩739 (up from ₩363 in 2Q 2023). Revenue: ₩556.2b (up 33% from 2Q 2023). Net income: ₩24.0b (up 95% from 2Q 2023). Profit margin: 4.3% (up from 2.9% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jun 20
Upcoming dividend of ₩180 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 29 August 2024. Payout ratio is a comfortable 15% but the company is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (2.3%). Declared Dividend • May 23
Dividend of ₩180 announced Shareholders will receive a dividend of ₩180. Ex-date: 27th June 2024 Payment date: 29th August 2024 Dividend yield will be 1.0%, which is lower than the industry average of 2.4%. Sustainability & Growth Dividend is covered by earnings (15% 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 decreased over the past 56 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 120% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 18
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: ₩1,023 (up from ₩302 in 1Q 2023). Revenue: ₩573.0b (up 52% from 1Q 2023). Net income: ₩33.4b (up 209% from 1Q 2023). Profit margin: 5.8% (up from 2.9% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 17%. Earnings per share (EPS) also surpassed analyst estimates by 103%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Major Estimate Revision • May 16
Consensus EPS estimates increase by 25% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ₩2.18b to ₩2.30b. EPS estimate increased from ₩3,034 to ₩3,779 per share. Net income forecast to grow 184% next year vs 37% growth forecast for Machinery industry in South Korea. Consensus price target up from ₩38,833 to ₩40,333. Share price rose 12% to ₩28,700 over the past week. Major Estimate Revision • May 14
Consensus EPS estimates increase by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ₩2.18b to ₩2.20b. EPS estimate increased from ₩3,034 to ₩3,342 per share. Net income forecast to grow 191% next year vs 37% growth forecast for Machinery industry in South Korea. Consensus price target of ₩38,833 unchanged from last update. Share price rose 8.6% to ₩28,450 over the past week. Reported Earnings • Mar 19
Full year 2023 earnings released: EPS: ₩1,193 (vs ₩2,213 in FY 2022) Full year 2023 results: EPS: ₩1,193 (down from ₩2,213 in FY 2022). Revenue: ₩1.88t (up 12% from FY 2022). Net income: ₩40.0b (down 48% from FY 2022). Profit margin: 2.1% (down from 4.6% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Aankondiging • Mar 15
SFA Engineering Corporation (KOSDAQ:A056190) announces an Equity Buyback for KRW 10,000 million worth of its shares. SFA Engineering Corporation (KOSDAQ:A056190) announces a share repurchase program. Under the program, the company will repurchase up to KRW 10,000 million worth of its shares according to the contract with NH INVESTMENT & SECURITIES CO.,LTD. The purpose of the program is stock price stability and increase in shareholder value. The program will expire on March 12, 2025. As of March 12, 2024, the company had 3,332,076 and 0 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. Major Estimate Revision • Feb 24
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from ₩2.13b to ₩2.06b. EPS estimate also fell from ₩3,537 per share to ₩3,173 per share. Net income forecast to grow 122% next year vs 62% growth forecast for Machinery industry in South Korea. Consensus price target broadly unchanged at ₩40,500. Share price was steady at ₩26,950 over the past week. Upcoming Dividend • Dec 20
Upcoming dividend of ₩520 per share at 2.4% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 08 April 2024. Payout ratio is on the higher end at 79%, and the cash payout ratio is above 100%. Trailing yield: 2.4%. Lower than top quartile of South Korean dividend payers (3.5%). In line with average of industry peers (2.3%). Major Estimate Revision • Nov 17
Consensus EPS estimates fall by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from ₩1.81b to ₩1.69b. EPS estimate also fell from ₩1,782 per share to ₩1,321 per share. Net income forecast to grow 65% next year vs 41% growth forecast for Machinery industry in South Korea. Consensus price target down from ₩42,167 to ₩40,833. Share price was steady at ₩29,400 over the past week. Aankondiging • Oct 31
SFA Engineering Corporation (KOSDAQ:A056190) announces an Equity Buyback for KRW 10,000 million worth of its shares. SFA Engineering Corporation (KOSDAQ:A056190) announces a share repurchase program. Under the program, the company will repurchase up to KRW 10,000 million worth of its shares according to the contract with NH INVESTMENT & SECURITIES CO.,LTD. The purpose of the program is stock price stability and shareholder value enhancement. The program will expire on October 29, 2024. As of October 29, 2023, the company had 3,062,768 and 0 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. Price Target Changed • Oct 18
Price target decreased by 9.1% to ₩43,167 Down from ₩47,500, the current price target is an average from 6 analysts. New target price is 42% above last closing price of ₩30,500. Stock is down 19% over the past year. The company is forecast to post earnings per share of ₩1,863 for next year compared to ₩2,213 last year. New Risk • Aug 30
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 23% 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. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.5% net profit margin). Major Estimate Revision • Aug 25
Consensus EPS estimates fall by 54% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from ₩3,897 to ₩1,775 per share. Revenue forecast steady at ₩1.91b. Net income forecast to grow 50% next year vs 46% growth forecast for Machinery industry in South Korea. Consensus price target down from ₩50,429 to ₩49,286. Share price fell 2.4% to ₩33,000 over the past week. Major Estimate Revision • Aug 19
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from ₩1.91b to ₩1.87b. EPS estimate also fell from ₩3,817 per share to ₩3,415 per share. Net income forecast to grow 93% next year vs 43% growth forecast for Machinery industry in South Korea. Consensus price target down from ₩51,857 to ₩50,429. Share price fell 11% to ₩33,800 over the past week. Aankondiging • Jul 01
SFA Engineering Corporation (KOSDAQ:A056190) announces an Equity Buyback for KRW 30,000 million worth of its shares. SFA Engineering Corporation (KOSDAQ:A056190) announces a share repurchase program. Under the program, the company will repurchase up to KRW 30,000 million worth of its shares according to the contract with NH INVESTMENT & SECURITIES CO.,LTD. The purpose of the program is stock price stability and shareholder value enhancement. The program will expire on June 28, 2024. As of June 29, 2023, the company had 1,965,921 and 0 treasury stock holdings in acquisition within the scope of allotment and through other acquisition, respectively. Upcoming Dividend • Jun 22
Upcoming dividend of ₩350 per share at 2.7% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 29 August 2023. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of South Korean dividend payers (3.2%). Higher than average of industry peers (2.0%). Major Estimate Revision • May 17
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from ₩1.93b to ₩1.73b. EPS estimate fell from ₩4,020 to ₩3,956 per share. Net income forecast to grow 76% next year vs 35% growth forecast for Machinery industry in South Korea. Consensus price target down from ₩51,714 to ₩50,667. Share price fell 2.1% to ₩37,950 over the past week. Reported Earnings • Mar 18
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: ₩2,213 (down from ₩3,254 in FY 2021). Revenue: ₩1.68t (up 7.6% from FY 2021). Net income: ₩77.2b (down 34% from FY 2021). Profit margin: 4.6% (down from 7.5% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 26%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Major Estimate Revision • Feb 16
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from ₩4,707 to ₩4,126 per share. Revenue forecast steady at ₩2.02b. Net income forecast to grow 32% next year vs 40% growth forecast for Machinery industry in South Korea. Consensus price target broadly unchanged at ₩52,857. Share price was steady at ₩37,600 over the past week. Major Estimate Revision • Nov 22
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from ₩1.75b to ₩1.73b. EPS estimate also fell from ₩3,202 per share to ₩2,783 per share. Net income forecast to grow 48% next year vs 42% growth forecast for Machinery industry in South Korea. Consensus price target of ₩53,250 unchanged from last update. Share price rose 2.3% to ₩39,700 over the past week. 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. 5 experienced directors. 2 highly experienced directors. 2 independent directors (5 non-independent directors). Vice Chairperson Jin Won was the last director to join the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Major Estimate Revision • Aug 20
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from ₩1.82b to ₩1.77b. EPS estimate also fell from ₩4,140 per share to ₩3,538 per share. Net income forecast to grow 41% next year vs 67% growth forecast for Machinery industry in South Korea. Consensus price target broadly unchanged at ₩53,125. Share price fell 4.8% to ₩41,300 over the past week. Major Estimate Revision • May 14
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from ₩4,337 to ₩3,455 per share. Revenue forecast steady at ₩1.81b. Net income forecast to grow 35% next year vs 25% growth forecast for Machinery industry in South Korea. Consensus price target broadly unchanged at ₩51,875. Share price was steady at ₩39,550 over the past week. 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. 5 experienced directors. 2 highly experienced directors. 2 independent directors (5 non-independent directors). Vice Chairperson Jin Won was the last director to join the board, commencing their role in 2010. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Aankondiging • Apr 15
SFA Engineering Corporation (KOSDAQ:A056190) announces an Equity Buyback for KRW 10,000 million worth of its shares. SFA Engineering Corporation (KOSDAQ:A056190) announces a share repurchase program. Under the program, the company will repurchase up to KRW 10,000 million worth of its shares pursuant to a trust contract with NH Investment & Securities Co., Ltd. The purpose of repurchase program is to stabilize share prices and enhance shareholder value. The repurchase program is valid till April 14, 2023. As of April 13, 2021, the company had 1,242,154 treasury stock under buyback within dividend capacity and no treasury stock under other buyback. Reported Earnings • Mar 18
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: ₩3,254 (up from ₩3,176 in FY 2020). Revenue: ₩1.56t (flat on FY 2020). Net income: ₩116.9b (up 7.9% from FY 2020). Profit margin: 7.5% (up from 7.0% in FY 2020). Revenue exceeded analyst estimates by 1.0%. Earnings per share (EPS) also surpassed analyst estimates by 1.1%. Over the next year, revenue is forecast to grow 12%, compared to a 21% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 22
Upcoming dividend of ₩950 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 11 April 2022. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 2.6%. Within top quartile of South Korean dividend payers (2.4%). In line with average of industry peers (2.8%). Reported Earnings • Nov 17
Third quarter 2021 earnings released: EPS ₩646 (vs ₩723 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: ₩391.0b (up 2.6% from 3Q 2020). Net income: ₩23.2b (down 4.2% from 3Q 2020). Profit margin: 5.9% (down from 6.4% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • May 20
First quarter 2021 earnings released: EPS ₩704 (vs ₩591 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: ₩355.6b (down 3.3% from 1Q 2020). Net income: ₩25.3b (up 28% from 1Q 2020). Profit margin: 7.1% (up from 5.4% in 1Q 2020). The increase in margin was driven by lower 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 6% per year, which means it is well ahead of earnings. Major Estimate Revision • May 15
Consensus EPS estimates fall to ₩3,636 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from ₩1.78b to ₩1.69b. EPS estimate also fell from ₩4,155 to ₩3,636. Net income forecast to grow 19% next year vs 51% growth forecast for Machinery industry in South Korea. Consensus price target broadly unchanged at ₩52,264. Share price was steady at ₩41,900 over the past week. Reported Earnings • Mar 19
Full year 2020 earnings released: EPS ₩3,176 (vs ₩3,939 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩1.55t (down 1.7% from FY 2019). Net income: ₩108.3b (down 18% from FY 2019). Profit margin: 7.0% (down from 8.4% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Price Target Changed • Mar 10
Price target raised to ₩51,621 Up from ₩47,979, the current price target is an average from 15 analysts. The new target price is 28% above the current share price of ₩40,200. As of last close, the stock is up 11% over the past year. Is New 90 Day High Low • Feb 15
New 90-day high: ₩43,050 The company is up 13% from its price of ₩37,950 on 17 November 2020. The South Korean market is up 21% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Machinery industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩134,105 per share. Is New 90 Day High Low • Jan 25
New 90-day high: ₩40,500 The company is up 11% from its price of ₩36,500 on 27 October 2020. The South Korean market is up 33% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩115,938 per share. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩1,056 Per Share Will be paid on the 10th of April to those who are registered shareholders by the 29th of December. The trailing yield of 2.8% is in the top quartile of South Korean dividend payers (2.6%), and it is in line with industry peers (2.8%). Major Estimate Revision • Nov 19
Analysts lower EPS estimates to ₩3,291 The 2020 consensus revenue estimate was lowered from ₩1.73b to ₩1.65b. Earning per share (EPS) estimate was also lowered from ₩3,956 to ₩3,291 for the same period. Net income is expected to grow by 12% next year compared to 35% growth forecast for the Machinery industry in South Korea. The consensus price target was lowered from ₩46,264 to ₩46,050. Share price stayed mostly flat at ₩37,900 over the past week. Is New 90 Day High Low • Oct 20
New 90-day high: ₩40,500 The company is up 19% from its price of ₩33,900 on 22 July 2020. The South Korean market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is down 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩90,566 per share. Is New 90 Day High Low • Sep 28
New 90-day high: ₩38,150 The company is up 17% from its price of ₩32,700 on 30 June 2020. The South Korean market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is flat over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩87,451 per share.