Buy Or Sell Opportunity • Jun 24
Now 28% overvalued Over the last 90 days, the stock has fallen 18% to ₩3,505. The fair value is estimated to be ₩2,729, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.2% over the last 3 years. Meanwhile, the company has become profitable. Buy Or Sell Opportunity • Jun 09
Now 24% overvalued Over the last 90 days, the stock has fallen 22% to ₩3,390. The fair value is estimated to be ₩2,726, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.2% over the last 3 years. Meanwhile, the company has become profitable. New Risk • Apr 01
New major risk - Revenue and earnings growth Earnings have declined by 21% 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 (0.7x net interest cover). Earnings have declined by 21% per year over the past 5 years. Minor Risk Dividend is not well covered by cash flows (168% cash payout ratio). Declared Dividend • Mar 14
Dividend increased to ₩180 Dividend of ₩180 is 5.9% higher than last year. Ex-date: 30th March 2026 Payment date: 1st January 1970 Dividend yield will be 4.2%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (41% cash payout ratio). The dividend has increased by an average of 1.8% per year over the past 7 years and payments have been stable during that time. The company's earnings per share (EPS) would need to decline by 35% to shift the payout ratio to a potentially unsustainable range, which is more than the 12% EPS decline seen over the last 5 years. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩4,060, the stock trades at a trailing P/E ratio of 14x. Average trailing P/E is 17x in the Basic Materials industry in South Korea. Total returns to shareholders of 29% over the past three years. New Risk • May 23
New major risk - Revenue and earnings growth Earnings have declined by 4.6% 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 4.6% per year over the past 5 years. Minor Risk Paying a dividend despite being loss-making. New Risk • Apr 21
New minor risk - Dividend sustainability The dividend is not well covered by earnings. The company is paying a dividend despite being loss-making. Dividend yield: 4.7% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings 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. However, this risk is mitigated by the fact the dividend is covered by cash flows. 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 Risk Interest payments are not well covered by earnings (1.3x net interest cover). Minor Risk Paying a dividend despite being loss-making. Aankondiging • Mar 13
Eugene Corporation, Annual General Meeting, Mar 26, 2025 Eugene Corporation, Annual General Meeting, Mar 26, 2025, at 09:01 Tokyo Standard Time. Location: conference room, 66, gilju-ro, gyeonggi-do, bucheon South Korea Aankondiging • Mar 12
Eugene Corporation announces Annual dividend Eugene Corporation announced Annual dividend of KRW 170.0000 per share, ex-date on March 28, 2025 and record date on March 31, 2025. New Risk • Nov 26
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: 2.6% Last year net profit margin: 6.4% 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 Interest payments are not well covered by earnings (1.2x net interest cover). Minor Risk Profit margins are more than 30% lower than last year (2.6% net profit margin). Reported Earnings • Mar 26
Full year 2023 earnings released: EPS: ₩959 (vs ₩188 loss in FY 2022) Full year 2023 results: EPS: ₩959 (up from ₩188 loss in FY 2022). Revenue: ₩1.47t (up 4.7% from FY 2022). Net income: ₩65.7b (up ₩79.0b from FY 2022). Profit margin: 4.5% (up from net loss in FY 2022). Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩170 per share at 4.8% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 15 April 2024. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 4.8%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (4.3%). Reported Earnings • May 21
First quarter 2023 earnings released: EPS: ₩441 (vs ₩34.40 loss in 1Q 2022) First quarter 2023 results: EPS: ₩441 (up from ₩34.40 loss in 1Q 2022). Revenue: ₩347.8b (up 15% from 1Q 2022). Net income: ₩30.3b (up ₩32.7b from 1Q 2022). Profit margin: 8.7% (up from net loss in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 26
Full year 2022 earnings released: ₩188 loss per share (vs ₩1,081 profit in FY 2021) Full year 2022 results: ₩188 loss per share (down from ₩1,081 profit in FY 2021). Revenue: ₩1.41t (up 4.6% from FY 2021). Net loss: ₩13.2b (down 117% from profit in FY 2021). Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩170 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.4%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (1.7%). Aankondiging • Oct 06
Eugene Corporation (KOSDAQ:A023410) announces an Equity Buyback for KRW 5,000 million worth of its shares. Eugene Corporation (KOSDAQ:A023410) announces a share repurchase program. Under the program, the company will repurchase up to KRW 5,000 million worth of its shares pursuant to a contract with Eugene Investment & Securities Co. , Ltd. The purpose of the program is to improve shareholder value and to stabilize stock price. The program will expire on April 5, 2023. As of October 5, 2022, the company had 3,302,404 shares in treasury within scope available for dividend and had 4,068,339 shares in treasury through other repurchase. Aankondiging • Feb 09
Eugene Corporation (KOSDAQ:A023410) announces an Equity Buyback for KRW 5,000 million worth of its shares. Eugene Corporation (KOSDAQ:A023410) announces a share repurchase program. Under the program, the company will repurchase up to KRW 5,000 million worth of its shares pursuant to a contract with Eugene Investment & Securities Co. , Ltd. The purpose of the program is to improve shareholder value and to stabilize stock price. The program will expire on August 8, 2022. As of February 7, 2022, the company had no shares in treasury within scope available for dividend and had 4,068,339 shares in treasury through other repurchase. Upcoming Dividend • Dec 22
Upcoming dividend of ₩170 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 20 April 2022. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 3.5%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.7%). Is New 90 Day High Low • Jan 05
New 90-day high: ₩5,020 The company is up 19% from its price of ₩4,220 on 07 October 2020. The South Korean market is up 23% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 23% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩150 Per Share Will be paid on the 16th of April to those who are registered shareholders by the 29th of December. The trailing yield of 3.2% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (2.4%). Is New 90 Day High Low • Dec 09
New 90-day high: ₩4,760 The company is up 12% from its price of ₩4,250 on 10 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Basic Materials industry, which is up 9.0% over the same period. Is New 90 Day High Low • Nov 09
New 90-day high: ₩4,455 The company is up 3.0% from its price of ₩4,330 on 11 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 Basic Materials industry, which is down 8.0% over the same period. 