New Risk • May 28
New major risk - Revenue and earnings growth Earnings have declined by 11% 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 11% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩79.3b market cap, or US$52.8m). Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩6,990, the stock trades at a trailing P/E ratio of 23.1x. Average trailing P/E is 23x in the Machinery industry in South Korea. Total returns to shareholders of 19% over the past three years. Announcement • Mar 04
HS Valve Co., Ltd, Annual General Meeting, Mar 30, 2026 HS Valve Co., Ltd, Annual General Meeting, Mar 30, 2026, at 09:00 Tokyo Standard Time. Location: conference room, 23, paldal-ro 2-gil, seo-gu, daegu South Korea Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩8,720, the stock trades at a trailing P/E ratio of 28.8x. Average trailing P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 81% over the past three years. New Risk • Nov 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: 3.7% Last year net profit margin: 6.6% 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 Profit margins are more than 30% lower than last year (3.7% net profit margin). Market cap is less than US$100m (₩80.7b market cap, or US$55.2m). Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to ₩10,310, the stock trades at a trailing P/E ratio of 15.1x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total returns to shareholders of 45% over the past three years. Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩9,540, the stock trades at a trailing P/E ratio of 14x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total returns to shareholders of 62% over the past three years. Reported Earnings • Mar 27
Full year 2024 earnings released: EPS: ₩682 (vs ₩775 in FY 2023) Full year 2024 results: EPS: ₩682 (down from ₩775 in FY 2023). Revenue: ₩91.3b (flat on FY 2023). Net income: ₩7.10b (down 12% from FY 2023). Profit margin: 7.8% (down from 8.8% in FY 2023). Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to ₩10,950, the stock trades at a trailing P/E ratio of 19.2x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total returns to shareholders of 99% over the past three years. Announcement • Mar 01
HS Valve Co., Ltd, Annual General Meeting, Mar 31, 2025 HS Valve Co., Ltd, Annual General Meeting, Mar 31, 2025, at 09:01 Tokyo Standard Time. Location: conference room, 23, paldal-ro 2-gil, seo-gu, daegu South Korea Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩7,860, the stock trades at a trailing P/E ratio of 13.8x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total returns to shareholders of 53% over the past three years. New Risk • Jan 25
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 13% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Revenue has declined by 1.8% over the past year. Minor Risk Market cap is less than US$100m (₩96.8b market cap, or US$67.7m). Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩9,460, the stock trades at a trailing P/E ratio of 16.6x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total returns to shareholders of 78% over the past three years. New Risk • Dec 07
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% 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 Share price has been highly volatile over the past 3 months (13% average weekly change). High level of non-cash earnings (21% accrual ratio). Minor Risks Less than 3 years of financial data is available. Market cap is less than US$100m (₩79.3b market cap, or US$55.8m). New Risk • Dec 02
New major risk - Revenue and earnings growth Revenue has declined by 1.8% over the past year. 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 revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue 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 Share price has been highly volatile over the past 3 months (12% average weekly change). Revenue has declined by 1.8% over the past year. Minor Risk Market cap is less than US$100m (₩116.2b market cap, or US$82.7m). Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩11,660, the stock trades at a trailing P/E ratio of 17.4x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total returns to shareholders of 105% over the past three years. Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩11,070, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 12x in the Machinery industry in South Korea. Total returns to shareholders of 91% over the past three years. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩10,630, the stock trades at a trailing P/E ratio of 15.9x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total returns to shareholders of 59% over the past three years. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to ₩14,310, the stock trades at a trailing P/E ratio of 21.2x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total returns to shareholders of 114% over the past three years. 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 ₩10,080, the stock trades at a trailing P/E ratio of 15x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total returns to shareholders of 38% over the past three years. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to ₩9,180, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total returns to shareholders of 21% over the past three years. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩7,780, the stock trades at a trailing P/E ratio of 11.6x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total loss to shareholders of 4.3% over the past three years. Valuation Update With 7 Day Price Move • Jun 03
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to ₩6,640, the stock trades at a trailing P/E ratio of 8.6x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total loss to shareholders of 25% over the past three years. Reported Earnings • Mar 22
Full year 2023 earnings released: EPS: ₩775 (vs ₩286 in FY 2022) Full year 2023 results: EPS: ₩775 (up from ₩286 in FY 2022). Revenue: ₩91.6b (up 7.0% from FY 2022). Net income: ₩8.07b (up 171% from FY 2022). Profit margin: 8.8% (up from 3.5% in FY 2022). The increase in margin was driven by higher revenue. 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. 3 experienced directors. No highly experienced directors. 1 independent director (2 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 • Sep 20
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩6,630, the stock trades at a trailing P/E ratio of 21.8x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total loss to shareholders of 18% over the past three years. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improved over the past week After last week's 20% share price gain to ₩8,250, the stock trades at a trailing P/E ratio of 27.2x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total returns to shareholders of 11% over the past three years. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improved over the past week After last week's 28% share price gain to ₩7,240, the stock trades at a trailing P/E ratio of 23.8x. Average trailing P/E is 20x in the Machinery industry in South Korea. Total returns to shareholders of 16% over the past three years. Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩5,760, the stock trades at a trailing P/E ratio of 19x. Average trailing P/E is 19x in the Machinery industry in South Korea. Total loss to shareholders of 32% over the 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. 3 experienced directors. No highly experienced directors. 1 independent director (2 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 • Apr 04
Investor sentiment improved over the past week After last week's 19% share price gain to ₩7,100, the stock trades at a trailing P/E ratio of 30.9x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total loss to shareholders of 30% over the past three years. Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment improved over the past week After last week's 32% share price gain to ₩8,230, the stock trades at a trailing P/E ratio of 69.2x. Average trailing P/E is 21x in the Machinery industry in South Korea. Total returns to shareholders of 39% over the past three years. Is New 90 Day High Low • Jan 22
New 90-day high: ₩6,180 The company is up 18% from its price of ₩5,250 on 23 October 2020. The South Korean market is up 32% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 22% over the same period. Is New 90 Day High Low • Dec 18
New 90-day high: ₩6,040 The company is up 4.0% from its price of ₩5,800 on 18 September 2020. The South Korean market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 15% over the same period.