Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩2,675, the stock trades at a trailing P/E ratio of 9.4x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total loss to shareholders of 42% over the past three years. New Risk • May 28
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: 4.3% Last year net profit margin: 11% 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 Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.3% net profit margin). Market cap is less than US$100m (₩24.7b market cap, or US$16.4m). Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to ₩4,630, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 26x in the Machinery industry in South Korea. Total returns to shareholders of 30% over the past year. New Risk • Sep 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 7.6% 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 (43% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (7.6% average weekly change). Market cap is less than US$100m (₩35.9b market cap, or US$25.8m). Valuation Update With 7 Day Price Move • Sep 01
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to ₩4,490, the stock trades at a trailing P/E ratio of 5.7x. Average trailing P/E is 26x in the Machinery industry in South Korea. Total returns to shareholders of 16% over the past year. Announcement • Aug 08
SHINIL Corporation completed the acquisition of an additional 19.45% stake in S&W Corporation (KOSDAQ:A103230) from Jeong Hwa-seop. SHINIL Corporation executed a contract to acquire an additional 19.45% stake in S&W Corporation (KOSDAQ:A103230) from Jeong Hwa-seop for KRW 5.3 billion on July 8, 2025. SHINIL Corporation will acquire 1.5 million shares at a price of KRW 3,210 per share. The consideration may be changed by mutual agreement between SHINIL Corporation and Jeong Hwa-seop. As of August 7, 2025, the shares to be acquired were corrected to 1.4 million shares at a price of KRW 3,800 per share.
Upon completion, SHINIL Corporation will own 29.40% stake in S&W Corporation and Jeong Hwa-seop will continue to hold 21.16% stake in S&W Corporation. Post correction, SHINIL Corporation is expected to own 29.40% stake in S&W Corporation and Jeong Hwa-seop will continue to hold 28.01% stake in S&W Corporation. SHINIL Corporation borrowed KRW 5.32 billion from Hana Bank and Woori Bank for the purpose of the acquisiton.
The transaction is expected to close on August 7, 2025.
SHINIL Corporation completed the acquisition of an additional 19.45% stake in S&W Corporation (KOSDAQ:A103230) from Jeong Hwa-seop on August 7, 2025. Valuation Update With 7 Day Price Move • May 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩3,315, the stock trades at a trailing P/E ratio of 5x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total loss to shareholders of 27% over the past year. New Risk • Mar 26
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 23% 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 (23% accrual ratio). Minor Risk Market cap is less than US$100m (₩22.1b market cap, or US$15.1m). Announcement • Feb 25
S&W Corporation, Annual General Meeting, Mar 28, 2025 S&W Corporation, Annual General Meeting, Mar 28, 2025, at 11:00 Tokyo Standard Time. Location: conference room, 29, dadae-ro 170beon-gil, saha-gu, busan South Korea New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Market cap is less than US$100m (₩21.8b market cap, or US$15.2m). Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩3,030, the stock trades at a trailing P/E ratio of 7.1x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total loss to shareholders of 26% over the past year. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩3,035, the stock trades at a trailing P/E ratio of 7.2x. Average trailing P/E is 12x in the Machinery industry in South Korea. Total loss to shareholders of 24% over the past year. New Risk • Aug 24
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: 7.0% Last year net profit margin: 11% 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 (7.0% net profit margin). Market cap is less than US$100m (₩27.1b market cap, or US$20.5m). 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 ₩3,790, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total loss to shareholders of 27% over the past year. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩4,625, the stock trades at a trailing P/E ratio of 9.6x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total returns to shareholders of 25% over the past year. Buy Or Sell Opportunity • Apr 09
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at ₩3,950. The fair value is estimated to be ₩3,228, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 84%. Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩4,255, the stock trades at a trailing P/E ratio of 7.3x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total returns to shareholders of 70% over the past three years. Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩101 (vs ₩126 in 3Q 2022) Third quarter 2023 results: EPS: ₩101 (down from ₩126 in 3Q 2022). Revenue: ₩9.90b (up 11% from 3Q 2022). Net income: ₩727.2m (down 20% from 3Q 2022). Profit margin: 7.3% (down from 10% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩4,825, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total returns to shareholders of 71% over the past three years. Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩5,020, the stock trades at a trailing P/E ratio of 10.3x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total returns to shareholders of 166% over the past three years. New Risk • Jul 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 11% 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 Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (₩48.7b market cap, or US$37.5m). Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to ₩6,760, the stock trades at a trailing P/E ratio of 13.9x. Average trailing P/E is 18x in the Machinery industry in South Korea. Total returns to shareholders of 261% over the past three years. Board Change • Mar 29
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. 2 experienced directors. 7 highly experienced directors. 1 independent director (8 non-independent directors). Director Myung-Gu Heo was the last director to join the board, commencing their role in 2009. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment.