Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩145,200, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 7x in the Industrials industry in South Korea. Total returns to shareholders of 97% over the past three years. Major Estimate Revision • Jul 04
Consensus EPS estimates fall by 30% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from ₩13,673 to ₩9,592 per share. Revenue forecast steady at ₩47.0b. Net income forecast to grow 131% next year vs 143% growth forecast for Industrials industry in South Korea. Consensus price target broadly unchanged at ₩240,714. Share price rose 3.4% to ₩155,100 over the past week. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩150,200, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 8x in the Industrials industry in South Korea. Total returns to shareholders of 134% over the past three years. Announcement • Jun 04
Home plus Reportedly Puts Its Remaining Operations Up for Sale Home plus Co.,LTD. has put its remaining operations up for sale after agreeing to dispose of its supermarket arm, industry sources said on 02 June 2026, courting domestic and foreign buyers as the debt-laden retailer seeks funding ahead of a court-imposed restructuring deadline. According to the sources, Homeplus's sales adviser, PwC Korea, has sent teaser materials to more than 10 domestic and overseas strategic investors as part of a sale process for the retailer's hypermarket and online businesses. Potential buyers include South Korean retail groups LOTTE Corporation (KOSE:A004990), SHINSEGAE Inc. (KOSE:A004170) and CJ Corporation (KOSE:A001040), as well as Chinese e-commerce companies Alibaba Group Holding Limited (NYSE:BABA) and Temu. The push follows Homeplus's May agreement to sell its supermarket unit, Homeplus Express, to Harim Group's NS Shopping for $80 million in cash, with the buyer also assuming part of the division's liabilities. The transaction would ease the retailer's liquidity strain, though additional funding would still be needed to stabilize operations, the company noted. "The sale of Homeplus Express is expected to improve liquidity, but because the proceeds will not be received for another two months, we need additional funding both to maintain operations until the cash inflow arrives and to implement the rehabilitation plan," the company said in a statement. An escalating liquidity crisis compounds the challenge, despite MBK Partners' provision of KRW 100 billion in debtor-in-possession financing in March. The company is currently seeking a KRW 100 billion bridge loan from its largest creditor, Meritz Financial Group, to sustain operations until cash from the Express sale arrives. The talks have deadlocked, however, with Meritz demanding a personal guarantee from MBK Chairman Michael Kim, immediate repayment once the proceeds land and a 6% interest rate. Homeplus must win court approval for its rehabilitation plan by July 3 or face the prospect of liquidation. Even if the court extends the deadline to September, industry observers warn that the risk of liquidation would rise sharply if the company cannot keep its remaining locations open, with dozens of stores already idled. Homeplus temporarily suspended operations at 37 low-performing locations from May through July, out of its 104 hypermarkets total. It has delayed wage payments to employees and struggled to keep shelves stocked as supplier payments have fallen behind. Some believe the better path is not a package sale of the remaining hypermarket and online operations, but carving out valuable real estate assets from operating units to lower the cost of acquiring the core retail business. "Finding a buyer for Homeplus's entire store network will be challenging, so selling prime locations separately could be one way to improve the chances of a deal," one industry official said. New Risk • May 28
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 3.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (3.0x net interest cover). Minor Risk Large one-off items impacting financial results. Major Estimate Revision • May 19
Consensus EPS estimates increase by 19% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has improved. 2026 revenue forecast increased from ₩45.2b to ₩46.9b. EPS estimate increased from ₩12,622 to ₩15,077 per share. Net income forecast to grow 138% next year vs 158% growth forecast for Industrials industry in South Korea. Consensus price target of ₩240,000 unchanged from last update. Share price fell 17% to ₩173,200 over the past week. Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₩170,100, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Industrials industry in South Korea. Total returns to shareholders of 101% over the past three years. New Risk • May 15
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 96% Dividend yield: 1.5% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. 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 (62% net debt to equity). Dividend is not well covered by earnings (96% payout ratio). Large one-off items impacting financial results. Price Target Changed • Apr 07
Price target increased by 7.4% to ₩240,000 Up from ₩223,375, the current price target is an average from 8 analysts. New target price is 31% above last closing price of ₩183,400. Stock is up 51% over the past year. The company is forecast to post earnings per share of ₩12,622 for next year compared to ₩4,275 last year. Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩207,000, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 11x in the Industrials industry in South Korea. Total returns to shareholders of 116% over the past three years. Announcement • Mar 11
CJ Corporation, Annual General Meeting, Mar 26, 2026 CJ Corporation, Annual General Meeting, Mar 26, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 26, pildong-ro, jung-gu, seoul South Korea Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩184,600, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 11x in the Industrials industry in South Korea. Total returns to shareholders of 106% over the past three years. Declared Dividend • Feb 11
Dividend increased to ₩3,300 Dividend of ₩3,300 is 10% higher than last year. Ex-date: 30th March 2026 Payment date: 1st January 1970 Dividend yield will be 1.5%, which is lower than the industry average of 2.6%. Sustainability & Growth Dividend is well covered by both earnings (27% earnings payout ratio) and cash flows (11% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 44% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 10
CJ Corporation announces Annual dividend CJ Corporation announced Annual dividend of KRW 3300.0000 per share, ex-date on March 30, 2026 and record date on March 31, 2026. Price Target Changed • Dec 03
Price target increased by 9.5% to ₩200,250 Up from ₩182,833, the current price target is an average from 8 analysts. New target price is 6.6% above last closing price of ₩187,900. Stock is up 93% over the past year. The company is forecast to post earnings per share of ₩12,717 for next year compared to ₩2,415 last year. Major Estimate Revision • Nov 26
Consensus EPS estimates increase by 24% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from ₩10,509 to ₩12,995. Revenue forecast steady at ₩45.3b. Net income forecast to grow 25% next year vs 25% growth forecast for Industrials industry in South Korea. Consensus price target up from ₩182,833 to ₩194,571. Share price rose 2.4% to ₩179,000 over the past week. Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: ₩4,281 (vs ₩5,041 loss in 3Q 2024) Third quarter 2025 results: EPS: ₩4,281 (up from ₩5,041 loss in 3Q 2024). Revenue: ₩11t (up 5.4% from 3Q 2024). Net income: ₩143.6b (up ₩312.6b from 3Q 2024). Profit margin: 1.3% (up from net loss in 3Q 2024). Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 13% decline forecast for the Industrials industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 35% per year, which means it is well ahead of earnings. Price Target Changed • Nov 02
Price target increased by 7.1% to ₩182,833 Up from ₩170,667, the current price target is an average from 6 analysts. New target price is 7.1% above last closing price of ₩170,700. Stock is up 68% over the past year. The company is forecast to post earnings per share of ₩10,509 for next year compared to ₩2,415 last year. Announcement • Oct 16
CJ BIO Showcases Science-Backed Nutrition Solutions at SSG 2025 CJ BIO will join SupplySide Global 2025 under the theme "Where Function Meets Clinical Proof." The company will present science-backed Nutrition Solutions for muscle health, beauty, and general wellness, supported by study data and research insight. NDI- Completed Strength Solutions for Every Muscle's Need. The lineup includes WellNrich Leanepic, a proprietary botanical extract designed to support muscle health naturally. It has successfully received FDA NDI Notification in July of 2025, demonstrating its safety and regulatory compliance in the U.S. market. Leanepic is a Plant-based Rosemary Concentrate, a proprietary extract refined by science and standardized to contain 50% ursolic acid for improved muscle health. Also featured is BiomeNrich™? POST M005 (pasteurized Akkermansiamuciniphila), the first Akkermansia strain to complete FDA New Dietary Ingredient (NDI) notification, s supporting both healthy aging and aging well--hel helping proactive individuals maintain vitality, mobility, and muscle health through microbiome innovation. BiomeNrich™? condition-specific biotic solutions support better sleep, radiant skin tone, enhanced skin immunity, and healthy weight management-- demonstrating how inner microbial balance translates into visible beauty and overall well-being. Holistic Health, Powered by Fermentation and Bifidobacterium Solutions featuring Lactiplantibacillusplantarum from kimchi and Bifidobacteria strains support gut health and overall well-being, while AMINATURE®? L-Arginine and L-Histidine contribute to personal care and vitality, offering a comprehensive approach to holistic wellness. New Risk • Aug 31
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: 0.1% Last year net profit margin: 1.0% 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 (69% net debt to equity). Dividend is not well covered by earnings (176% payout ratio). Share price has been volatile over the past 3 months (8.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Price Target Changed • Aug 23
Price target increased by 11% to ₩167,800 Up from ₩151,667, the current price target is an average from 5 analysts. New target price is 12% above last closing price of ₩149,200. Stock is up 17% over the past year. The company is forecast to post earnings per share of ₩10,099 for next year compared to ₩2,415 last year. Major Estimate Revision • Aug 20
Consensus EPS estimates increase by 26% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from ₩6,698 to ₩8,464. Revenue forecast steady at ₩45.1b. Net income forecast to grow 439% next year vs 15% growth forecast for Industrials industry in South Korea. Consensus price target up from ₩151,667 to ₩160,000. Share price fell 7.5% to ₩148,500 over the past week. Price Target Changed • Aug 19
Price target increased by 7.5% to ₩153,333 Up from ₩142,571, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of ₩151,000. Stock is up 21% over the past year. The company is forecast to post earnings per share of ₩8,464 for next year compared to ₩2,415 last year. Announcement • Jul 07
Cj Group to Launch Millstone Cue in August, A Game Changer in Content Creation CJ Group will launch its AI-powered video solution, Millstone CUE, this August, offering comprehensive services from video search and editing to content generation. The initial release will focus on automatically detecting and blurring people and objects within videos, with additional features to follow. Millstone CUE integrates proprietary AI Blur and AI Remover technologies that automatically detect and either blur or seamlessly remove individuals, brand logos and filming equipment appearing in video footage. Moving beyond traditional manual editing, the system understands the full context of a video and processes it automatically. Extensive testing has confirmed it can reduce editing time by up to 91%. Major Estimate Revision • May 20
Consensus EPS estimates fall by 45% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ₩12,177 to ₩6,699 per share. Revenue forecast steady at ₩45.6b. Net income forecast to grow 433% next year vs 11% growth forecast for Industrials industry in South Korea. Consensus price target of ₩136,833 unchanged from last update. Share price fell 4.7% to ₩121,000 over the past week. Major Estimate Revision • Apr 11
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ₩13,639 to ₩12,177 per share. Revenue forecast steady at ₩46.3b. Net income forecast to grow 366% next year vs 13% growth forecast for Industrials industry in South Korea. Consensus price target of ₩137,500 unchanged from last update. Share price fell 12% to ₩116,000 over the past week. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 1 highly experienced director. Independent Outside Director Yeon Geun Kim was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. New Risk • Mar 25
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: 0.2% Last year net profit margin: 0.5% 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 (57% net debt to equity). Dividend is not well covered by earnings (112% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Major Estimate Revision • Mar 21
Consensus EPS estimates increase by 19% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from ₩10,047 to ₩11,909. Revenue forecast steady at ₩45.8b. Net income forecast to grow 326% next year vs 20% growth forecast for Industrials industry in South Korea. Consensus price target up from ₩136,778 to ₩139,556. Share price was steady at ₩127,900 over the past week. Valuation Update With 7 Day Price Move • Mar 14
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩125,700, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 8x in the Industrials industry in South Korea. Total returns to shareholders of 62% over the past three years. Announcement • Mar 08
CJ Corporation, Annual General Meeting, Mar 26, 2025 CJ Corporation, Annual General Meeting, Mar 26, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 26, pildong-ro, jung-gu, seoul South Korea Valuation Update With 7 Day Price Move • Feb 25
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩112,500, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 8x in the Industrials industry in South Korea. Total returns to shareholders of 41% over the past three years. Declared Dividend • Feb 12
Dividend of ₩3,000 announced Shareholders will receive a dividend of ₩3,000. Ex-date: 3rd April 2025 Payment date: 1st January 1970 Dividend yield will be 3.1%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is not covered by earnings (112% earnings payout ratio). However, it is well covered by cash flows (4% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. The company's earnings per share (EPS) would need to grow by 25% to bring the payout ratio under control. EPS is expected to grow by 183% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩104,300, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 7x in the Industrials industry in South Korea. Total returns to shareholders of 34% over the past three years. Price Target Changed • Dec 06
Price target decreased by 7.0% to ₩139,778 Down from ₩150,375, the current price target is an average from 9 analysts. New target price is 48% above last closing price of ₩94,700. Stock is down 3.7% over the past year. The company is forecast to post earnings per share of ₩5,609 for next year compared to ₩4,685 last year. New Risk • Nov 22
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 56% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (56% net debt to equity). Dividend is not well covered by earnings (112% payout ratio). Large one-off items impacting financial results. New Risk • Nov 18
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 23% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (112% payout ratio). Large one-off items impacting financial results. Reported Earnings • Nov 18
Third quarter 2024 earnings released: ₩4,983 loss per share (vs ₩4,094 profit in 3Q 2023) Third quarter 2024 results: ₩4,983 loss per share (down from ₩4,094 profit in 3Q 2023). Revenue: ₩11t (up 2.1% from 3Q 2023). Net loss: ₩167.1b (down 222% from profit in 3Q 2023). Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Industrials industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Major Estimate Revision • Nov 18
Consensus EPS estimates fall by 54%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from ₩44.0b to ₩46.2b. EPS estimate fell from ₩14,559 to ₩6,720 per share. Net income forecast to shrink 5.7% next year vs 32% growth forecast for Industrials industry in South Korea . Consensus price target down from ₩150,375 to ₩146,625. Share price was steady at ₩97,000 over the past week. Major Estimate Revision • Aug 21
Consensus EPS estimates increase by 34% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ₩10,784 to ₩14,495. Revenue forecast steady at ₩44.0b. Net income forecast to grow 33% next year vs 33% growth forecast for Industrials industry in South Korea. Consensus price target of ₩150,429 unchanged from last update. Share price rose 6.5% to ₩124,400 over the past week. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: ₩5,651 (vs ₩368 in 2Q 2023) Second quarter 2024 results: EPS: ₩5,651 (up from ₩368 in 2Q 2023). Revenue: ₩11t (up 3.8% from 2Q 2023). Net income: ₩189.5b (up ₩177.2b from 2Q 2023). Profit margin: 1.8% (up from 0.1% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the Industrials industry in South Korea. Over the last 3 years on average, earnings per share has increased by 11% per year and the company’s share price has also increased by 11% per year. New Risk • Aug 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 8.3% 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 High level of debt (55% net debt to equity). 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 (8.3% average weekly change). Large one-off items impacting financial results. Major Estimate Revision • Jul 16
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩12,677 to ₩10,784 per share. Revenue forecast steady at ₩44.0b. Net income forecast to grow 95% next year vs 67% growth forecast for Industrials industry in South Korea. Consensus price target broadly unchanged at ₩144,714. Share price was steady at ₩116,700 over the past week. Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩122,700, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 8x in the Industrials industry in South Korea. Total returns to shareholders of 28% over the past three years. Major Estimate Revision • May 29
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩14,553 to ₩12,677 per share. Revenue forecast steady at ₩43.9b. Net income forecast to grow 120% next year vs 41% growth forecast for Industrials industry in South Korea. Consensus price target up from ₩141,286 to ₩146,143. Share price was steady at ₩137,100 over the past week. Major Estimate Revision • May 18
Consensus EPS estimates increase by 35% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from ₩43.1b to ₩44.0b. EPS estimate increased from ₩10,779 to ₩14,553 per share. Net income forecast to grow 201% next year vs 34% growth forecast for Industrials industry in South Korea. Consensus price target up from ₩132,000 to ₩141,286. Share price fell 2.4% to ₩142,000 over the past week. Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩151,000, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 8x in the Industrials industry in South Korea. Total returns to shareholders of 52% over the past three years. Price Target Changed • Apr 11
Price target increased by 11% to ₩132,000 Up from ₩118,857, the current price target is an average from 7 analysts. New target price is 8.1% above last closing price of ₩122,100. Stock is up 11% over the past year. The company is forecast to post earnings per share of ₩10,779 for next year compared to ₩5,809 last year. New Risk • Apr 10
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 8.3% 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 Interest payments are not well covered by earnings (2.7x net interest cover). 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 (8.3% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩108,400, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 9x in the Industrials industry in South Korea. Total returns to shareholders of 17% over the past three years. Major Estimate Revision • Nov 29
Consensus EPS estimates increase by 32%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from ₩42.1b to ₩41.6b. EPS estimate rose from ₩4,643 to ₩6,119. Net income forecast to grow 544% next year vs 91% growth forecast for Industrials industry in South Korea. Consensus price target down from ₩114,400 to ₩112,000. Share price was steady at ₩90,100 over the past week. New Risk • Nov 23
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 56% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (56% net debt to equity). Dividend is not well covered by earnings (168% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.1% net profit margin). Reported Earnings • Nov 18
Third quarter 2023 earnings released: EPS: ₩4,095 (vs ₩2,368 in 3Q 2022) Third quarter 2023 results: EPS: ₩4,095 (up from ₩2,368 in 3Q 2022). Revenue: ₩11t (down 2.5% from 3Q 2022). Net income: ₩137.3b (up 73% from 3Q 2022). Profit margin: 1.3% (up from 0.7% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Industrials industry in South Korea. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 4% per year. Announcement • Aug 24
CJ CGV Co., Ltd. (KOSE:A079160) agreed to acquire CJ OliveNetworks Co., Ltd from CJ Corporation (KOSE:A001040) for KRW 440 billion CJ CGV Co., Ltd. (KOSE:A079160) agreed to acquire CJ OliveNetworks Co., Ltd from CJ Corporation (KOSE:A001040) for KRW 440 billion on August 22, 2023. The transaction is expected to close on October 6, 2023. New Risk • Aug 23
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 64% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (64% net debt to equity). Paying a dividend despite being loss-making. Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: ₩367 (vs ₩3,329 in 2Q 2022) Second quarter 2023 results: EPS: ₩367 (down from ₩3,329 in 2Q 2022). Revenue: ₩10t (flat on 2Q 2022). Net income: ₩12.3b (down 89% from 2Q 2022). Profit margin: 0.1% (down from 1.1% in 2Q 2022). Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Industrials industry in South Korea. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 18
Consensus EPS estimates fall by 14% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from ₩10,708 to ₩9,216 per share. Revenue forecast steady at ₩43.1b. Net income forecast to grow 377% next year vs 65% growth forecast for Industrials industry in South Korea. Consensus price target down from ₩114,800 to ₩109,667. Share price fell 8.0% to ₩70,400 over the past week. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩78,400, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 6x in the Industrials industry in South Korea. Total loss to shareholders of 7.3% over the past three years. Price Target Changed • Jul 28
Price target decreased by 7.9% to ₩114,800 Down from ₩124,667, the current price target is an average from 5 analysts. New target price is 80% above last closing price of ₩63,800. Stock is down 20% over the past year. The company is forecast to post earnings per share of ₩10,708 for next year compared to ₩4,860 last year. Major Estimate Revision • Jun 22
Consensus EPS estimates increase by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from ₩43.1b to ₩43.5b. EPS estimate increased from ₩8,712 to ₩10,747 per share. Net income forecast to grow 295% next year vs 100% growth forecast for Industrials industry in South Korea. Consensus price target down from ₩124,667 to ₩120,500. Share price fell 9.0% to ₩72,800 over the past week. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩92,200, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Industrials industry in South Korea. Total returns to shareholders of 23% over the past three years. Reported Earnings • Mar 26
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: ₩6,023 (down from ₩8,197 in FY 2021). Revenue: ₩41t (up 19% from FY 2021). Net income: ₩202.1b (down 27% from FY 2021). Profit margin: 0.5% (down from 0.8% in FY 2021). Revenue exceeded analyst estimates by 1.9%. Earnings per share (EPS) missed analyst estimates by 44%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Industrials industry in South Korea. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩2,300 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 28 April 2023. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (3.9%). Major Estimate Revision • Dec 10
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from ₩39.7b to ₩41.0b. EPS estimate fell from ₩11,719 to ₩8,328 per share. Net income forecast to grow 103% next year vs 15% growth forecast for Industrials industry in South Korea. Consensus price target of ₩115,333 unchanged from last update. Share price rose 6.9% to ₩80,800 over the past week. Reported Earnings • Nov 20
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: ₩2,368 (up from ₩1,557 in 3Q 2021). Revenue: ₩11t (up 23% from 3Q 2021). Net income: ₩79.4b (up 52% from 3Q 2021). Profit margin: 0.7% (up from 0.6% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.0%. Earnings per share (EPS) missed analyst estimates by 45%. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Industrials industry in South Korea. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Outside Director Yeon Geun Kim was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 22
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: ₩2,462 (up from ₩1,557 in 1Q 2021). Revenue: ₩9.12t (up 14% from 1Q 2021). Net income: ₩82.6b (up 58% from 1Q 2021). Profit margin: 0.9% (up from 0.7% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.5%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 8.4%, compared to a 12% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 20% 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. Major Estimate Revision • May 19
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from ₩37.3b to ₩38.0b. EPS estimate fell from ₩14,040 to ₩11,850 per share. Net income forecast to grow 70% next year vs 16% growth forecast for Industrials industry in South Korea. Consensus price target broadly unchanged at ₩121,286. Share price fell 2.6% to ₩81,000 over the past week. Board Change • May 03
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Outside Director Yeon Geun Kim was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Upcoming Dividend • Dec 22
Upcoming dividend of ₩2,000 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 02 May 2022. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 2.4%. Within top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (2.8%). Reported Earnings • Nov 19
Third quarter 2021 earnings released: EPS ₩1,557 (vs ₩1,884 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: ₩8.85t (up 7.6% from 3Q 2020). Net income: ₩52.2b (down 17% from 3Q 2020). Profit margin: 0.6% (down from 0.8% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 23
Second quarter 2021 earnings released: EPS ₩2,776 (vs ₩818 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ₩8.34t (up 7.0% from 2Q 2020). Net income: ₩93.1b (up 239% from 2Q 2020). Profit margin: 1.1% (up from 0.4% in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. Major Estimate Revision • May 18
Consensus EPS estimates fall to ₩10,161 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from ₩35.0b to ₩34.3b. EPS estimate also fell from ₩11,386 to ₩10,161. Net income forecast to grow 362% next year vs 113% growth forecast for Industrials industry in South Korea. Consensus price target broadly unchanged at ₩121,000. Share price was steady at ₩109,500 over the past week. Price Target Changed • Feb 05
Price target raised to ₩118,222 Up from ₩108,100, the current price target is an average from 8 analysts. The new target price is 18% above the current share price of ₩99,800. As of last close, the stock is up 16% over the past year. Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment improved over the past week After last week's 21% share price gain to ₩115,000, the stock is trading at a trailing P/E ratio of 18.6x, up from the previous P/E ratio of 15.3x. This compares to an average P/E of 17x in the Industrials industry in South Korea. Total return to shareholders over the past three years is a loss of 32%. Is New 90 Day High Low • Jan 13
New 90-day high: ₩103,500 The company is up 29% from its price of ₩80,000 on 15 October 2020. The South Korean market is also up 29% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Industrials industry, which is up 34% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩380,162 per share.