Valuation Update With 7 Day Price Move • 2h
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩42,000, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 12x in the Machinery industry in South Korea. Total returns to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to ₩39,450, the stock trades at a trailing P/E ratio of 6x. Average trailing P/E is 12x in the Machinery industry in South Korea. Total returns to shareholders of 11% over the past three years. New Risk • May 24
New major risk - Revenue and earnings growth Earnings have declined by 0.4% 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 0.4% per year over the past 5 years. 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 (₩77.1b market cap, or US$50.7m). Reported Earnings • Mar 24
Full year 2025 earnings released: EPS: ₩5,173 (vs ₩3,934 in FY 2024) Full year 2025 results: EPS: ₩5,173 (up from ₩3,934 in FY 2024). Revenue: ₩221.8b (flat on FY 2024). Net income: ₩11.4b (up 32% from FY 2024). Profit margin: 5.1% (up from 3.9% in FY 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩35,000, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 23x in the Machinery industry in South Korea. Total returns to shareholders of 11% over the past three years. Announcement • Feb 27
Hwacheon Machine Tool Co., Ltd., Annual General Meeting, Mar 26, 2026 Hwacheon Machine Tool Co., Ltd., Annual General Meeting, Mar 26, 2026, at 09:30 Tokyo Standard Time. Location: conference room, 123-17, hanamsandan 4beon-ro, gwangsan-gu, gwangju South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩1,050 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 20 April 2026. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.9%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.0%). Valuation Update With 7 Day Price Move • Dec 04
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩37,400, the stock trades at a trailing P/E ratio of 6.3x. Average trailing P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 34% over the past three years. Buy Or Sell Opportunity • Nov 25
Now 20% undervalued Over the last 90 days, the stock has risen 4.8% to ₩31,700. The fair value is estimated to be ₩39,681, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.8% over the last 3 years. Earnings per share has declined by 54%. Declared Dividend • Nov 08
Dividend of ₩1,050 announced Dividend of ₩1,050 is the same as last year. Ex-date: 29th December 2025 Payment date: 20th April 2026 Dividend yield will be 3.4%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is well covered by both earnings (34% earnings payout ratio) and cash flows (15% cash payout ratio). The dividend has decreased over the past 66 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 4.4% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Nov 07
Hwacheon Machine Tool Co., Ltd. announces Annual dividend, payable on April 20, 2026 Hwacheon Machine Tool Co., Ltd. announced Annual dividend of KRW 1050.0000 per share payable on April 20, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. Reported Earnings • Aug 20
Second quarter 2025 earnings released: EPS: ₩1,545 (vs ₩1,794 in 2Q 2024) Second quarter 2025 results: EPS: ₩1,545 (down from ₩1,794 in 2Q 2024). Revenue: ₩58.5b (up 1.4% from 2Q 2024). Net income: ₩3.40b (down 14% from 2Q 2024). Profit margin: 5.8% (down from 6.8% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 14
Full year 2024 earnings released: EPS: ₩3,934 (vs ₩4,801 in FY 2023) Full year 2024 results: EPS: ₩3,934 (down from ₩4,801 in FY 2023). Revenue: ₩222.2b (down 1.6% from FY 2023). Net income: ₩8.65b (down 18% from FY 2023). Profit margin: 3.9% (down from 4.7% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Feb 20
Hwacheon Machine Tool Co., Ltd., Annual General Meeting, Mar 20, 2025 Hwacheon Machine Tool Co., Ltd., Annual General Meeting, Mar 20, 2025, at 09:30 Tokyo Standard Time. Location: conference room, 123-17, hanamsandan 4beon-ro, gwangsan-gu, gwangju South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩1,300 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 21 April 2025. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 4.9%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (2.0%). New Risk • Sep 26
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). Profit margins are more than 30% lower than last year (3.2% net profit margin). Market cap is less than US$100m (₩69.0b market cap, or US$51.9m). Valuation Update With 7 Day Price Move • Sep 24
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to ₩36,400, the stock trades at a trailing P/E ratio of 12.1x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total returns to shareholders of 11% over the past three years. Buy Or Sell Opportunity • Sep 24
Now 52% overvalued after recent price rise Over the last 90 days, the stock has risen 21% to ₩36,400. The fair value is estimated to be ₩23,944, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Earnings per share has grown by 24%. Buy Or Sell Opportunity • Aug 29
Now 20% overvalued Over the last 90 days, the stock has fallen 5.6% to ₩28,500. The fair value is estimated to be ₩23,721, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Earnings per share has grown by 24%. Buy Or Sell Opportunity • Aug 12
Now 21% overvalued Over the last 90 days, the stock has fallen 7.1% to ₩28,600. The fair value is estimated to be ₩23,670, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.8% over the last 3 years. Earnings per share has grown by 46%. Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩38,450, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 17x in the Machinery industry in South Korea. Total returns to shareholders of 39% over the past three years. Reported Earnings • Mar 15
Full year 2023 earnings released: EPS: ₩4,801 (vs ₩17,039 in FY 2022) Full year 2023 results: EPS: ₩4,801 (down from ₩17,039 in FY 2022). Revenue: ₩225.7b (down 7.5% from FY 2022). Net income: ₩10.6b (down 72% from FY 2022). Profit margin: 4.7% (down from 15% in FY 2022). The decrease in margin was primarily driven by lower 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 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 20
Upcoming dividend of ₩2,500 per share at 7.6% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 7.6%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.3%). Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: ₩17,039 (vs ₩4,233 in FY 2021) Full year 2022 results: EPS: ₩17,039 (up from ₩4,233 in FY 2021). Revenue: ₩244.1b (up 20% from FY 2021). Net income: ₩37.5b (up 303% from FY 2021). Profit margin: 15% (up from 4.6% in FY 2021). 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 13% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩1,000 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 24 April 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.1%). 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. 5 experienced directors. No highly experienced directors. 2 independent directors (3 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 27
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩29,600, the stock trades at a trailing P/E ratio of 5.4x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total loss to shareholders of 18% over the past three years. Reported Earnings • May 22
First quarter 2022 earnings released: EPS: ₩1,531 (vs ₩178 in 1Q 2021) First quarter 2022 results: EPS: ₩1,531 (up from ₩178 in 1Q 2021). Revenue: ₩54.9b (up 26% from 1Q 2021). Net income: ₩3.37b (up ₩2.98b from 1Q 2021). Profit margin: 6.1% (up from 0.9% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. 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. 5 experienced directors. No highly experienced directors. 2 independent directors (3 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. Upcoming Dividend • Dec 22
Upcoming dividend of ₩750 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 April 2022. Payout ratio is a comfortable 26% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (2.8%). Reported Earnings • May 20
First quarter 2021 earnings released: EPS ₩178 (vs ₩1,502 in 1Q 2020) The company reported a poor first quarter result with weaker earnings and profit margins, although revenues were flat. First quarter 2021 results: Revenue: ₩43.7b (flat on 1Q 2020). Net income: ₩392.0m (down 88% from 1Q 2020). Profit margin: 0.9% (down from 7.5% in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 21
Full year 2020 earnings released: EPS ₩2,053 (vs ₩3,388 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩161.7b (down 22% from FY 2019). Net income: ₩4.52b (down 39% from FY 2019). Profit margin: 2.8% (down from 3.6% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Announcement • Feb 26
Hwacheon Machine Tool Co. Ltd, Annual General Meeting, Mar 25, 2021 Hwacheon Machine Tool Co. Ltd, Annual General Meeting, Mar 25, 2021, at 09:30 Korea Standard Time. Is New 90 Day High Low • Feb 23
New 90-day low: ₩31,350 The company is down 1.0% from its price of ₩31,600 on 25 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 Machinery industry, which is up 2.0% over the same period. Is New 90 Day High Low • Jan 13
New 90-day high: ₩33,250 The company is up 7.0% from its price of ₩31,000 on 15 October 2020. The South Korean market is up 29% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 20% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩1,250 Per Share Will be paid on the 17th of April to those who are registered shareholders by the 29th of December. The trailing yield of 3.8% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (2.8%). Is New 90 Day High Low • Nov 23
New 90-day high: ₩31,950 The company is up 3.0% from its price of ₩31,100 on 25 August 2020. The South Korean market is up 9.0% 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. Is New 90 Day High Low • Sep 24
New 90-day low: ₩30,000 The company is down 3.0% from its price of ₩30,950 on 26 June 2020. The South Korean market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 3.0% over the same period. 
