New Risk • May 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩140.6b (US$95.3m) 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. New Risk • Mar 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩151.5b (US$100.0m) 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. Aankondiging • Mar 14
Cube Entertainment, Inc., Annual General Meeting, Mar 27, 2026 Cube Entertainment, Inc., Annual General Meeting, Mar 27, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 139, saneopdanji-gil, gyeonggi-do, paju South Korea Valuation Update With 7 Day Price Move • Sep 02
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩15,300, the stock trades at a trailing P/E ratio of 16.5x. Average forward P/E is 15x in the Entertainment industry in South Korea. Total returns to shareholders of 12% over the past three years. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: ₩165 (vs ₩147 in 2Q 2024) Second quarter 2025 results: EPS: ₩165 (up from ₩147 in 2Q 2024). Revenue: ₩55.2b (up 7.1% from 2Q 2024). Net income: ₩2.37b (up 18% from 2Q 2024). Profit margin: 4.3% (up from 3.9% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Entertainment industry in South Korea. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. New Risk • Apr 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (30% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (9.1% average weekly change). Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to ₩18,770, the stock trades at a trailing P/E ratio of 16.3x. Average trailing P/E is 25x in the Entertainment industry in South Korea. Total loss to shareholders of 2.5% over the past three years. Aankondiging • Mar 13
Cube Entertainment, Inc., Annual General Meeting, Mar 27, 2025 Cube Entertainment, Inc., Annual General Meeting, Mar 27, 2025, at 11:00 Tokyo Standard Time. Location: conference room, 139, saneopdanji-gil, gyeonggi-do, paju South Korea Aankondiging • Mar 06
Cube Entertainment, Inc. announced that it has received KRW 6.12355793 billion in funding On March 6, 2025, Cube Entertainment, Inc., closed the transaction. Aankondiging • Feb 26
Cube Entertainment, Inc. announced that it expects to receive KRW 6.12355793 billion in funding Cube Entertainment, Inc. announced a private placement to issue 430,933 shares at an issue price of KRW 14,210 per share for gross proceeds of KRW 6,123,557,930 on February 25, 2025. The transaction has been approved by shareholders, restricted to a hold period and is expected to close on March 6, 2025. The transaction will include participation from Employee Shareholders' Association. Valuation Update With 7 Day Price Move • Dec 09
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩13,670, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 25x in the Entertainment industry in South Korea. Total loss to shareholders of 44% over the past three years. Aankondiging • Dec 04
Cube Entertainment, Inc. (KOSDAQ:A182360) agreed to acquire an additional 2.4% stake in VT Co., Ltd. (KOSDAQ:A018290) from Jeong Chul for KRW 23 billion. Cube Entertainment, Inc. (KOSDAQ:A182360) agreed to acquire an additional 2.4% stake in VT Co., Ltd. (KOSDAQ:A018290) from Jeong Chul for KRW 23 billion on December 2, 2024. A cash consideration of KRW 23.04 billion will be paid by Cube Entertainment for 850,000 shares. The expected completion of the transaction is December 2, 2024. New Risk • Nov 28
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% 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 (26% accrual ratio). Minor Risk Shareholders have been diluted in the past year (5.6% increase in shares outstanding). Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩15,250, the stock trades at a trailing P/E ratio of 19.2x. Average forward P/E is 18x in the Entertainment industry in South Korea. Total loss to shareholders of 37% over the past three years. New Risk • Sep 01
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 15
Second quarter 2024 earnings released: EPS: ₩147 (vs ₩331 in 2Q 2023) Second quarter 2024 results: EPS: ₩147 (down from ₩331 in 2Q 2023). Revenue: ₩51.5b (up 22% from 2Q 2023). Net income: ₩2.00b (down 56% from 2Q 2023). Profit margin: 3.9% (down from 11% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 7.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jul 25
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩14,150, the stock trades at a trailing P/E ratio of 13.8x. Average forward P/E is 15x in the Entertainment industry in South Korea. Total returns to shareholders of 2.2% over the past three years. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: ₩297 (vs ₩74.00 in 1Q 2023) First quarter 2024 results: EPS: ₩297 (up from ₩74.00 in 1Q 2023). Revenue: ₩49.6b (up 104% from 1Q 2023). Net income: ₩4.06b (up 302% from 1Q 2023). Profit margin: 8.2% (up from 4.1% in 1Q 2023). 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 13% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩21,950, the stock trades at a trailing P/E ratio of 28.1x. Average trailing P/E is 32x in the Entertainment industry in South Korea. Total returns to shareholders of 151% over the past three years. Valuation Update With 7 Day Price Move • Dec 08
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩16,450, the stock trades at a trailing P/E ratio of 21x. Average trailing P/E is 35x in the Entertainment industry in South Korea. Total returns to shareholders of 91% over the past three years. Reported Earnings • Nov 13
Third quarter 2023 earnings released: EPS: ₩196 (vs ₩37.00 in 3Q 2022) Third quarter 2023 results: EPS: ₩196 (up from ₩37.00 in 3Q 2022). Revenue: ₩39.1b (up 51% from 3Q 2022). Net income: ₩2.68b (up 429% from 3Q 2022). Profit margin: 6.9% (up from 2.0% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 10
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₩15,820, the stock trades at a trailing P/E ratio of 25.4x. Average trailing P/E is 30x in the Entertainment industry in South Korea. Total returns to shareholders of 47% over the past three years. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to ₩27,500, the stock trades at a trailing P/E ratio of 62.4x. Average trailing P/E is 35x in the Entertainment industry in South Korea. Total returns to shareholders of 189% over the past three years. Buying Opportunity • May 25
Now 22% undervalued Over the last 90 days, the stock is up 6.5%. The fair value is estimated to be ₩25,461, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 51% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 56% in 2 years. Earnings is forecast to grow by 186% in the next 2 years. Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩21,000, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 25x in the Entertainment industry in South Korea. Total returns to shareholders of 153% over the past three years. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩22,250, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 23x in the Entertainment industry in South Korea. Total returns to shareholders of 161% over the past three years. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩25,650, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 21x in the Entertainment industry in South Korea. Total returns to shareholders of 227% over the past three years. Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment improved over the past week After last week's 17% share price gain to ₩15,900, the stock trades at a trailing P/E ratio of 58.4x. Average trailing P/E is 42x in the Entertainment industry in South Korea. Total returns to shareholders of 149% over the past three years. Reported Earnings • May 13
First quarter 2021 earnings released: EPS ₩43.00 (vs ₩19.00 loss in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ₩16.3b (up 219% from 1Q 2020). Net income: ₩1.49b (up ₩2.00b from 1Q 2020). Profit margin: 9.1% (up from net loss in 1Q 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 26
New 90-day low: ₩3,170 The company is down 13% from its price of ₩3,655 on 27 November 2020. The South Korean market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 16% over the same period. Is New 90 Day High Low • Dec 15
New 90-day low: ₩3,375 The company is down 22% from its price of ₩4,315 on 16 September 2020. The South Korean market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is down 8.0% over the same period. Is New 90 Day High Low • Nov 26
New 90-day low: ₩3,680 The company is down 29% from its price of ₩5,150 on 28 August 2020. The South Korean market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is down 5.0% over the same period. Is New 90 Day High Low • Oct 23
New 90-day low: ₩3,850 The company is down 11% from its price of ₩4,335 on 24 July 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 1.0% over the same period. Aankondiging • Oct 10
Cube Entertainment Inc. announced that it expects to receive KRW 2.99001375 billion in funding Cube Entertainment Inc. (KOSDAQ:A182360) announced a private placement of 797,337 common shares at an issue price of KRW 3,750 per share for gross proceeds of KRW 2,990,013,750 on October 8, 2020. The transaction will involve participation from Employee Stock Ownership Association. The shares have face value of KRW 100. The shares are issued at a discount of -9.83%. The shares issued in the transaction will have a hold period of 12 months from the date of issuance. The company will issue shares through third-party allotment method. Post the closing, the total number of shares issued by the company will increase from 33,721,501 shares to 34,518,838 shares. The payment date is October 20, 2020. The transaction has been approved by the board of directors of the company.