Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩4,535, the stock trades at a trailing P/E ratio of 3.1x. Average trailing P/E is 13x in the Electronic industry in South Korea. Total loss to shareholders of 65% over the past three years. New Risk • May 25
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 40% 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 Risks Earnings have declined by 6.0% per year over the past 5 years. High level of non-cash earnings (40% accrual ratio). Minor Risk Market cap is less than US$100m (₩88.9b market cap, or US$58.5m). Reported Earnings • Mar 27
Full year 2025 earnings released: EPS: ₩410 (vs ₩36.54 in FY 2024) Full year 2025 results: EPS: ₩410 (up from ₩36.54 in FY 2024). Revenue: ₩176.9b (up 9.9% from FY 2024). Net income: ₩6.53b (up ₩5.94b from FY 2024). Profit margin: 3.7% (up from 0.4% in FY 2024). Over the last 3 years on average, earnings per share has fallen by 30% per year whereas the company’s share price has fallen by 26% per year. Aankondiging • Mar 17
Derkwoo Electronics Co., Ltd, Annual General Meeting, Mar 31, 2026 Derkwoo Electronics Co., Ltd, Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 185-26, cheomdangieop-ro, sandong-myeon, gyeongsangbuk-do, gumi South Korea Aankondiging • Mar 14
Derkwoo Electronics Co., Ltd, Annual General Meeting, Mar 28, 2025 Derkwoo Electronics Co., Ltd, Annual General Meeting, Mar 28, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 185-26, cheomdangieop-ro, sandong-myeon, gyeongsangbuk-do, gumi South Korea New Risk • Jul 24
New major risk - Revenue and earnings growth Earnings have declined by 22% 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 Debt is not well covered by operating cash flow (8.9% operating cash flow to total debt). Earnings have declined by 22% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩107.8b market cap, or US$78.0m). New Risk • May 25
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 8.9% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (8.9% operating cash flow to total debt). Minor Risk Market cap is less than US$100m (₩129.8b market cap, or US$95.2m). Reported Earnings • Mar 26
Full year 2023 earnings released: ₩537 loss per share (vs ₩840 profit in FY 2022) Full year 2023 results: ₩537 loss per share (down from ₩840 profit in FY 2022). Revenue: ₩165.1b (down 21% from FY 2022). Net loss: ₩8.55b (down 164% from profit in FY 2022). Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Electronic industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. New Risk • Feb 06
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩132.2b (US$99.6m) 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: Major Risk Debt is not well covered by operating cash flow (2.8% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (9.6% average weekly change). Market cap is less than US$100m (₩132.2b market cap, or US$99.6m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩70.00 per share at 0.8% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 29 April 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of South Korean dividend payers (3.5%). In line with average of industry peers (0.9%). New Risk • Dec 01
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 2.8% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Nov 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩8,740, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 17x in the Electronic industry in South Korea. Total returns to shareholders of 28% over the past three years. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩10,970, the stock trades at a trailing P/E ratio of 13.1x. Average trailing P/E is 15x in the Electronic industry in South Korea. Total returns to shareholders of 47% over the past three years. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩12,130, the stock trades at a trailing P/E ratio of 18.8x. Average trailing P/E is 15x in the Electronic industry in South Korea. Total returns to shareholders of 131% over the past three years. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩9,260, the stock trades at a trailing P/E ratio of 14.4x. Average trailing P/E is 11x in the Electronic industry in South Korea. Total returns to shareholders of 5.8% over the past three years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩70.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 24 April 2023. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of South Korean dividend payers (3.3%). In line with average of industry peers (1.0%). Valuation Update With 7 Day Price Move • Sep 14
Investor sentiment improved over the past week After last week's 28% share price gain to ₩9,630, the stock trades at a trailing P/E ratio of 27.8x. Average trailing P/E is 13x in the Electronic industry in South Korea. Total returns to shareholders of 95% over the past three years. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩6,330, the stock trades at a trailing P/E ratio of 50.4x. Average trailing P/E is 13x in the Electronic industry in South Korea. Total returns to shareholders of 56% over the past three years. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improved over the past week After last week's 15% share price gain to ₩8,330, the stock trades at a trailing P/E ratio of 43.6x. Average trailing P/E is 17x in the Electronic industry in South Korea. Total returns to shareholders of 95% over the past three years. Valuation Update With 7 Day Price Move • Feb 15
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩6,900, the stock trades at a trailing P/E ratio of 36.1x. Average trailing P/E is 16x in the Electronic industry in South Korea. Total returns to shareholders of 50% over the past three years. Valuation Update With 7 Day Price Move • Jan 21
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩8,570, the stock trades at a trailing P/E ratio of 44.8x. Average trailing P/E is 19x in the Electronic industry in South Korea. Total returns to shareholders of 77% over the past three years. Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improved over the past week After last week's 23% share price gain to ₩8,970, the stock trades at a trailing P/E ratio of 46.9x. Average trailing P/E is 19x in the Electronic industry in South Korea. Total returns to shareholders of 128% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩140 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 13 April 2022. Payout ratio is a comfortable 73% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (0.4%). Aankondiging • Feb 26
Derkwoo Electronics Co., Ltd, Annual General Meeting, Mar 25, 2021 Derkwoo Electronics Co., Ltd, Annual General Meeting, Mar 25, 2021, at 09:00 Korea Standard Time. Is New 90 Day High Low • Feb 15
New 90-day high: ₩10,600 The company is up 50% from its price of ₩7,060 on 17 November 2020. The South Korean market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electronic industry, which is up 42% over the same period. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improved over the past week After last week's 19% share price gain to ₩9,880, the stock is trading at a trailing P/E ratio of 10.4x, up from the previous P/E ratio of 8.8x. This compares to an average P/E of 30x in the Electronic industry in South Korea. Total returns to shareholders over the past three years are 29%. Is New 90 Day High Low • Jan 20
New 90-day high: ₩8,130 The company is up 15% from its price of ₩7,080 on 22 October 2020. The South Korean market is up 28% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 42% over the same period. Is New 90 Day High Low • Dec 24
New 90-day high: ₩7,670 The company is up 10.0% from its price of ₩7,000 on 25 September 2020. The South Korean market is up 21% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 23% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩140 Per Share Will be paid on the 13th of April to those who are registered shareholders by the 29th of December. The trailing yield of 1.9% is below the top quartile of South Korean dividend payers (2.6%), but it is higher than industry peers (0.5%).