Aankondiging • Mar 13
SBSUNGBO Co., Ltd., Annual General Meeting, Mar 26, 2026 SBSUNGBO Co., Ltd., Annual General Meeting, Mar 26, 2026, at 11:00 Tokyo Standard Time. Location: conference room, 517, jukhwa-ro, gyeonggi-do, anseong South Korea New Risk • Nov 23
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 69% 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 (69% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩57.7b market cap, or US$39.2m). Reported Earnings • Mar 22
Full year 2024 earnings released: ₩176 loss per share (vs ₩65.00 profit in FY 2023) Full year 2024 results: ₩176 loss per share (down from ₩65.00 profit in FY 2023). Revenue: ₩59.8b (down 4.4% from FY 2023). Net loss: ₩3.44b (down 370% from profit in FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 67 percentage points per year, which is a significant difference in performance. Aankondiging • Mar 12
Sung Bo Chemicals Co., LTD, Annual General Meeting, Mar 26, 2025 Sung Bo Chemicals Co., LTD, Annual General Meeting, Mar 26, 2025, at 11:00 Tokyo Standard Time. Location: conference room, 517, jukhwa-ro, iljuk-myeon, gyeonggi-do, anseong South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩135 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 and is not cash flow positive. Trailing yield: 5.3%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (2.2%). New Risk • Dec 07
New minor risk - Financial data availability Less than 3 years of financial data is available. This is considered a minor risk. If the company has been trading for less than 3 years, then it has not had the opportunity to establish a long-term track record. This makes it difficult for investors to assess the true growth potential, sustainability and resilience of the business under different economic conditions. Currently, the following risks have been identified for the company: Minor Risks Less than 1 year of cash runway based on current free cash flow (-₩21b). Less than 3 years of financial data is available. Market cap is less than US$100m (₩48.8b market cap, or US$34.3m). Declared Dividend • Nov 27
Dividend of ₩135 announced Shareholders will receive a dividend of ₩135. Ex-date: 27th December 2024 Payment date: 16th April 2025 Dividend yield will be 5.3%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has not increased over the past 4 years but payments have been stable during that time. Reported Earnings • Nov 20
Third quarter 2024 earnings released: ₩158 loss per share (vs ₩120 loss in 3Q 2023) Third quarter 2024 results: ₩158 loss per share (further deteriorated from ₩120 loss in 3Q 2023). Revenue: ₩7.18b (up 8.8% from 3Q 2023). Net loss: ₩3.10b (loss widened 30% from 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 16
Full year 2023 earnings released: EPS: ₩65.00 (vs ₩204 in FY 2022) Full year 2023 results: EPS: ₩65.00 (down from ₩204 in FY 2022). Revenue: ₩62.6b (down 5.7% from FY 2022). Net income: ₩1.28b (down 68% from FY 2022). Profit margin: 2.0% (down from 6.0% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩135 per share at 4.5% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 19 April 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.8%). New Risk • Nov 25
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 40% 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: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 135% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.1% net profit margin). Market cap is less than US$100m (₩58.2b market cap, or US$44.7m). Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩3,420, the stock trades at a trailing P/E ratio of 52.9x. Average trailing P/E is 14x in the Chemicals industry in South Korea. Total loss to shareholders of 8.6% over the past three years. New Risk • Aug 28
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 209% The company is paying a dividend despite having no free cash flows. Dividend yield: 4.6% 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 Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 209% Paying a dividend despite having no free cash flows. Minor Risks Profit margins are more than 30% lower than last year (2.0% net profit margin). Market cap is less than US$100m (₩58.1b market cap, or US$43.9m). Reported Earnings • Mar 14
Full year 2022 earnings released: EPS: ₩204 (vs ₩69.00 in FY 2021) Full year 2022 results: EPS: ₩204 (up from ₩69.00 in FY 2021). Revenue: ₩66.4b (up 15% from FY 2021). Net income: ₩4.01b (up 195% from FY 2021). Profit margin: 6.0% (up from 2.4% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩120 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 24 April 2023. Payout ratio is a comfortable 47% but the company is not cash flow positive. Trailing yield: 3.7%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.4%). 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. No highly experienced directors. 1 independent director (5 non-independent 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: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Jun 22
Investor sentiment improved over the past week After last week's 24% share price gain to ₩4,665, the stock trades at a trailing P/E ratio of 19.5x. Average trailing P/E is 13x in the Chemicals industry in South Korea. Negligible returns to shareholders over 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. No highly experienced directors. 1 independent director (5 non-independent 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: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Mar 13
Full year 2021 earnings: EPS in line with expectations, revenues disappoint Full year 2021 results: EPS: ₩69.00 (up from ₩306 loss in FY 2020). Revenue: ₩57.7b (up 12% from FY 2020). Net income: ₩1.36b (up ₩7.35b from FY 2020). Profit margin: 2.4% (up from net loss in FY 2020). The move to profitability was primarily driven by higher revenue. Revenue missed analyst estimates by 2.2%. Upcoming Dividend • Dec 22
Upcoming dividend of ₩135 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 April 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 3.4%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.5%). Reported Earnings • Mar 12
Full year 2020 earnings released: ₩306 loss per share (vs ₩145 loss in FY 2019) The company reported a soft full year result with increased losses and weaker control over costs, although revenues improved. Full year 2020 results: Revenue: ₩51.7b (up 24% from FY 2019). Net loss: ₩5.99b (loss widened 109% from FY 2019). Is New 90 Day High Low • Feb 20
New 90-day low: ₩4,210 The company is down 1.0% from its price of ₩4,270 on 20 November 2020. The South Korean market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 23% over the same period. Is New 90 Day High Low • Jan 19
New 90-day high: ₩4,700 The company is up 11% from its price of ₩4,220 on 21 October 2020. The South Korean market is up 26% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 35% over the same period. Is New 90 Day High Low • Dec 12
New 90-day high: ₩4,495 The company is up 4.0% from its price of ₩4,320 on 11 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 14% over the same period. Is New 90 Day High Low • Oct 26
New 90-day low: ₩4,070 The company is down 7.0% from its price of ₩4,400 on 28 July 2020. The South Korean market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 22% over the same period. Is New 90 Day High Low • Sep 23
New 90-day low: ₩4,135 The company is down 14% from its price of ₩4,815 on 25 June 2020. The South Korean market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 27% over the same period.