New Risk • Jun 01
New major risk - Revenue and earnings growth Earnings have declined by 15% 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 Risk Earnings have declined by 15% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩108.5b market cap, or US$71.9m). Reported Earnings • Apr 03
Full year 2025 earnings released: ₩1,973 loss per share (vs ₩477 profit in FY 2024) Full year 2025 results: ₩1,973 loss per share (down from ₩477 profit in FY 2024). Revenue: ₩1.74t (down 2.1% from FY 2024). Net loss: ₩108.6b (down ₩132.2b from profit in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Announcement • Mar 17
MS Autotech Co.,Ltd, Annual General Meeting, Mar 31, 2026 MS Autotech Co.,Ltd, Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 16-9, poseok-ro, naenam-myeon, gyeongsangbuk-do, gyeongju South Korea New Risk • Mar 01
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 10% 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (10% average weekly change). New Risk • Aug 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩137.8b (US$99.1m) 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₩137.8b market cap, or US$99.1m). Announcement • Jul 08
Myoung Shin Industrial Co.,Ltd (KOSE:A009900) agreed to acquire Myoung Shin Fabricante De Carroceria Automotiva Ltda. from MS Autotech Co.,Ltd (KOSDAQ:A123040) and Myoung Shin Co., Ltd for KRW 54.5 billion. Myoung Shin Industrial Co.,Ltd (KOSE:A009900) agreed to acquire Myoung Shin Fabricante De Carroceria Automotiva Ltda. from MS Autotech Co.,Ltd (KOSDAQ:A123040) and Myoung Shin Co., Ltd for KRW 54.5 billion on July 7, 2025. Myoung Shin Industrial Co.,Ltd will pay an earnout/contingent payment of KRW 54.54 billion cash. As part of consideration, KRW 54.54 billion is paid towards common equity of Myoung Shin Fabricante De Carroceria Automotiva Ltda.
For the period ending December 31, 2024, Myoung Shin Fabricante De Carroceria Automotiva Ltda. reported total revenue of KRW 142.67 billion and net loss of KRW 5.09 billion. As of December 31, 2024, Myoung Shin Fabricante De Carroceria Automotiva Ltda. reported total debt of KRW 50.55 billion and total assets of KRW 102.95 billion.
The expected completion of the transaction is July 31, 2025. New Risk • Jun 01
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 21% 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. 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. Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (₩124.3b market cap, or US$90.0m). Buy Or Sell Opportunity • Apr 07
Now 25% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.1% to ₩2,340. The fair value is estimated to be ₩3,120, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.5% over the last 3 years. Meanwhile, the company has become profitable. New Risk • Mar 25
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 8.5% 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: Minor Risks Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (8.5% average weekly change). Market cap is less than US$100m (₩142.7b market cap, or US$97.5m). Announcement • Mar 14
MS Autotech Co.,Ltd, Annual General Meeting, Mar 28, 2025 MS Autotech Co.,Ltd, Annual General Meeting, Mar 28, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 16-9, poseok-ro, naenam-myeon, gyeongsangbuk-do, gyeongju South Korea New Risk • Nov 14
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩137.5b (US$97.9m) 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: Minor Risks Paying a dividend despite being loss-making. Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (₩137.5b market cap, or US$97.9m). New Risk • Sep 01
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 52% This is considered a major 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. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (52% increase in shares outstanding). Minor Risk Paying a dividend despite being loss-making. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩3,350, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 7x in the Auto Components industry in South Korea. Total loss to shareholders of 50% over the past three years. Announcement • May 29
MS Autotech Co.,Ltd (KOSDAQ:A123040) agreed to acquire SimWon Inc. from Song Hye-seung and others for KRW 100 billion. MS Autotech Co.,Ltd (KOSDAQ:A123040) agreed to acquire SimWon Inc. from Song Hye-seung and others for KRW 100 billion on May 27, 2024. MS Autotech Co.,Ltd will issue 71.2543578 shares for each share of SimWon. The deal is subject to MS Autotech's shareholder approval, and is expected to be completed on August 1, 2024. New Risk • Mar 27
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: 0.3% Last year net profit margin: 2.0% 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: Minor Risks High level of debt (52% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (0.3% net profit margin). Shareholders have been diluted in the past year (4.2% increase in shares outstanding). Reported Earnings • Mar 27
Full year 2023 earnings released: EPS: ₩121 (vs ₩861 in FY 2022) Full year 2023 results: EPS: ₩121 (down from ₩861 in FY 2022). Revenue: ₩2.08t (up 12% from FY 2022). Net income: ₩5.43b (down 86% from FY 2022). Profit margin: 0.3% (down from 2.0% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 121% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩50.00 per share at 1.0% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 03 May 2024. Payout ratio is a comfortable 6.0% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (2.0%). New Risk • Jul 21
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.9% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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: Minor Risks High level of debt (85% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Reported Earnings • May 18
First quarter 2023 earnings released: EPS: ₩80.00 (vs ₩125 in 1Q 2022) First quarter 2023 results: EPS: ₩80.00 (down from ₩125 in 1Q 2022). Revenue: ₩568.5b (up 31% from 1Q 2022). Net income: ₩3.51b (down 36% from 1Q 2022). Profit margin: 0.6% (down from 1.2% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩997 (vs ₩232 loss in FY 2021) Full year 2022 results: EPS: ₩997 (up from ₩232 loss in FY 2021). Revenue: ₩2.03t (up 33% from FY 2021). Net income: ₩43.4b (up ₩51.6b from FY 2021). Profit margin: 2.1% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 28
Full year 2021 earnings released: ₩232 loss per share (vs ₩2,698 loss in FY 2020) Full year 2021 results: ₩232 loss per share (up from ₩2,698 loss in FY 2020). Revenue: ₩1.52t (up 25% from FY 2020). Net loss: ₩8.23b (loss narrowed 91% from FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Dec 22
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 02 May 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (1.8%). Reported Earnings • Mar 26
Full year 2020 earnings released: ₩2,698 loss per share (vs ₩552 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: ₩1.22t (down 4.5% from FY 2019). Net loss: ₩92.4b (down ₩109.5b from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has increased by 31% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 05
New 90-day low: ₩8,200 The company is down 26% from its price of ₩11,050 on 04 December 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 Auto Components industry, which is up 22% over the same period. Announcement • Feb 18
MS Autotech Co.,Ltd announced that it expects to receive KRW 25 billion in funding MS Autotech Co.,Ltd (KOSDAQ:A123040) announced a private placement of series 25 non-guaranteed private convertible bonds for gross proceeds of KRW 25,000,000,000 on February 16, 2021. The transaction will include participation Korea Investment-On Enterprise Green Mobility No. 1 Corporate Financial Stability Private Equity Partnership. The bonds have a surface interest rate of 1% and interest rate to maturity of 3% and debt maturity date of February 24, 2026. The bonds are 100% convertible into 555,555 common shares for 32.03% stake in the company at a conversion price of KRW 45,000 per share. The conversion period starts from March 24, 2021 and ends on January 24, 2026. The company expects to close the transaction on February 24, 2021. The transaction has been approved by the company’s board of directors. Is New 90 Day High Low • Nov 25
New 90-day high: ₩7,450 The company is up 41% from its price of ₩5,300 on 28 August 2020. The South Korean market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Auto Components industry, which is up 17% over the same period. Reported Earnings • Nov 18
Third quarter 2020 earnings released: ₩214 loss per share The company reported a poor third quarter result with weaker earnings and control over expenses, although revenues were flat. Third quarter 2020 results: Revenue: ₩331.1b (flat on 3Q 2019). Net loss: ₩7.32b (down 177% from profit in 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has increased by 27% per year, which means it is well ahead of earnings.