New Risk • May 28
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩147.9b (US$98.4m) 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. This is currently the only risk that has been identified for the company. Upcoming Dividend • Dec 22
Upcoming dividend of ₩160 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 22 April 2026. Payout ratio is a comfortable 13% but the company is paying out more than the cash it is generating. Trailing yield: 2.5%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.0%). New Risk • Nov 16
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Dividend per share is over 6x cash flows per share. Dividend yield: 2.5% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 16
Third quarter 2025 earnings released: EPS: ₩355 (vs ₩177 in 3Q 2024) Third quarter 2025 results: EPS: ₩355 (up from ₩177 in 3Q 2024). Revenue: ₩86.5b (up 5.1% from 3Q 2024). Net income: ₩8.96b (up 101% from 3Q 2024). Profit margin: 10% (up from 5.4% in 3Q 2024). Over the last 3 years on average, earnings per share has fallen by 10% 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. Declared Dividend • Nov 08
Dividend of ₩160 announced Dividend of ₩160 is the same as last year. Ex-date: 29th December 2025 Payment date: 22nd April 2026 Dividend yield will be 2.5%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by both earnings (15% earnings payout ratio) and cash flows (59% cash payout ratio). The dividend has increased by an average of 15% per year over the past 6 years and payments have been stable during that time. Earnings per share has grown by 15% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Nov 07
Daechang Forging Co., Ltd. announces Annual dividend, payable on April 22, 2026 Daechang Forging Co., Ltd. announced Annual dividend of KRW 160.0000 per share payable on April 22, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. Reported Earnings • Aug 19
Second quarter 2025 earnings released: EPS: ₩156 (vs ₩398 in 2Q 2024) Second quarter 2025 results: EPS: ₩156 (down from ₩398 in 2Q 2024). Revenue: ₩85.0b (up 3.8% from 2Q 2024). Net income: ₩3.95b (down 61% from 2Q 2024). Profit margin: 4.6% (down from 12% 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 9% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Reported Earnings • May 21
First quarter 2025 earnings released: EPS: ₩376 (vs ₩371 in 1Q 2024) First quarter 2025 results: EPS: ₩376. Revenue: ₩87.2b (up 6.7% from 1Q 2024). Net income: ₩9.47b (down 1.5% from 1Q 2024). Profit margin: 11% (in line with 1Q 2024). Buy Or Sell Opportunity • May 20
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 6.5% to ₩5,700. The fair value is estimated to be ₩4,741, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 5.5% over the last 3 years, while earnings per share has been flat. Reported Earnings • Mar 26
Full year 2024 earnings released: EPS: ₩1,317 (vs ₩1,310 in FY 2023) Full year 2024 results: EPS: ₩1,317. Revenue: ₩322.2b (down 13% from FY 2023). Net income: ₩33.6b (down 1.1% from FY 2023). Profit margin: 10% (up from 9.1% in FY 2023). The increase in margin was driven by lower expenses. Announcement • Feb 28
Daechang Forging Co., Ltd., Annual General Meeting, Mar 28, 2025 Daechang Forging Co., Ltd., Annual General Meeting, Mar 28, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 115-92, bongnim-ro, saengnim-myeon, gyeongsangnam-do, gimhae South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩180 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 23 April 2025. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (2.0%). Reported Earnings • Nov 20
Third quarter 2024 earnings released: EPS: ₩177 (vs ₩310 in 3Q 2023) Third quarter 2024 results: EPS: ₩177 (down from ₩310 in 3Q 2023). Revenue: ₩82.3b (down 3.3% from 3Q 2023). Net income: ₩4.46b (down 45% from 3Q 2023). Profit margin: 5.4% (down from 9.4% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 8% per year. New Risk • Sep 17
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 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 (₩124.1b market cap, or US$94.3m). New Risk • Jul 05
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩134.9b (US$97.7m) 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 (₩134.9b market cap, or US$97.7m). Reported Earnings • May 19
First quarter 2024 earnings released: EPS: ₩371 (vs ₩432 in 1Q 2023) First quarter 2024 results: EPS: ₩371 (down from ₩432 in 1Q 2023). Revenue: ₩81.8b (down 21% from 1Q 2023). Net income: ₩9.62b (down 14% from 1Q 2023). Profit margin: 12% (up from 11% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • Apr 18
Daechang Forging Co., Ltd. (KOSE:A015230) announces an Equity Buyback for KRW 5,000 million worth of its shares. Daechang Forging Co., Ltd. (KOSE:A015230) announces a share repurchase program. Under the program, the company will repurchase up to KRW 5,000 million worth of its shares, pursuant to a contract with Mirae Asset Securities. The purpose of the program is to stabilize stock price and improve the shareholder value. The program will expire on October 21, 2024. As of April 15, 2024, the company had 2,659,246 shares in treasury within scope available for dividend and had 12,270 shares in treasury under other capacities. New Risk • Apr 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩136.0b (US$99.7m) 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 (₩136.0b market cap, or US$99.7m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩200 per share at 3.3% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 3.3%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.3%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩310 (vs ₩453 in 3Q 2022) Third quarter 2023 results: EPS: ₩310 (down from ₩453 in 3Q 2022). Revenue: ₩85.1b (down 21% from 3Q 2022). Net income: ₩8.03b (down 32% from 3Q 2022). Profit margin: 9.4% (down from 11% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.1% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 19
First quarter 2023 earnings released: EPS: ₩432 (vs ₩308 in 1Q 2022) First quarter 2023 results: EPS: ₩432 (up from ₩308 in 1Q 2022). Revenue: ₩103.6b (up 8.2% from 1Q 2022). Net income: ₩11.2b (up 41% from 1Q 2022). Profit margin: 11% (up from 8.3% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Machinery industry in South Korea. Over the last 3 years on average, earnings per share has increased by 42% per year whereas the company’s share price has increased by 43% per year. Upcoming Dividend • Dec 21
Upcoming dividend of ₩135 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 21 April 2023. Payout ratio is a comfortable 8.9% and this is well supported by cash flows. Trailing yield: 3.3%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.1%). Board Change • Nov 16
No independent directors 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. No 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: Lack of independent directors. Insufficient board refreshment. Announcement • Oct 22
Daechang Forging Co., Ltd. (KOSE:A015230) completed the acquisition of 30% stake in TREK, Inc. Daechang Forging Co., Ltd. (KOSE:A015230) agreed to acquire additional 30% stake in TREK, Inc for KRW 25 billion on October 13, 2022. Daechang Forging Co., Ltd. will acquire remaining 3000 shares of TREK, Inc and the payment will be made in 3 installments. TREK, Inc reported turnover of KRW 107 billion, Total assets Worth KRW 77 billion, Net Income of KRW 6 billion and Total Common equity of KRW 41 billion.
Daechang Forging Co., Ltd. (KOSE:A015230) completed the acquisition of 30% stake in TREK, Inc on October 20, 2022. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩5,010, the stock trades at a trailing P/E ratio of 3.9x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total returns to shareholders of 92% over the past three years. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 15% share price gain to ₩5,630, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 123% over the past three years. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩5,400, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 116% over the past three years. Reported Earnings • May 22
First quarter 2022 earnings released First quarter 2022 results: Revenue: ₩95.7b (up 14% from 1Q 2021). Net income: ₩7.97b (down 18% from 1Q 2021). Profit margin: 8.3% (down from 12% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 19% share price gain to ₩6,650, the stock trades at a trailing P/E ratio of 6.5x. Average trailing P/E is 20x in the Machinery industry in South Korea. Total returns to shareholders of 156% over the past three years. Board Change • Apr 27
No independent directors 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. No 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: Lack of independent directors. Insufficient board refreshment. Board Change • Feb 21
No independent directors 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. No 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: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩180 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 21 April 2022. Payout ratio is a comfortable 12% but the company is not cash flow positive. 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 16
Third quarter 2021 earnings released: EPS ₩433 (vs ₩257 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ₩74.8b (up 22% from 3Q 2020). Net income: ₩5.61b (up 65% from 3Q 2020). Profit margin: 7.5% (up from 5.5% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 14% per year. Valuation Update With 7 Day Price Move • May 07
Investor sentiment improved over the past week After last week's 16% share price gain to ₩10,250, the stock trades at a trailing P/E ratio of 10.2x. Average trailing P/E is 21x in the Machinery industry in South Korea. Total returns to shareholders of 47% over the past three years. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improved over the past week After last week's 17% share price gain to ₩8,300, the stock trades at a trailing P/E ratio of 8.3x. Average trailing P/E is 21x in the Machinery industry in South Korea. Total returns to shareholders of 38% over the past three years. Is New 90 Day High Low • Feb 24
New 90-day low: ₩6,280 The company is down 13% from its price of ₩7,190 on 17 November 2020. The South Korean market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 5.0% over the same period. Announcement • Feb 22
Daechang Forging Co., Ltd., Annual General Meeting, Mar 26, 2021 Daechang Forging Co., Ltd., Annual General Meeting, Mar 26, 2021, at 10:00 Korea Standard Time. Is New 90 Day High Low • Jan 15
New 90-day high: ₩7,380 The company is up 9.0% from its price of ₩6,770 on 16 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 26% over the same period. Is New 90 Day High Low • Dec 28
New 90-day high: ₩7,350 The company is up 14% from its price of ₩6,470 on 29 September 2020. The South Korean market is up 20% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 19% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩220 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 3.2% 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 • Dec 11
New 90-day high: ₩7,300 The company is up 32% from its price of ₩5,550 on 11 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 11% over the same period. Reported Earnings • Nov 18
Third quarter 2020 earnings released: EPS ₩257 The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ₩61.3b (down 5.3% from 3Q 2019). Net income: ₩3.40b (down 23% from 3Q 2019). Profit margin: 5.5% (down from 6.8% in 3Q 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Nov 05
New 90-day high: ₩35,250 The company is up 30% from its price of ₩27,200 on 07 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is flat over the same period. Is New 90 Day High Low • Oct 08
New 90-day high: ₩34,950 The company is up 37% from its price of ₩25,500 on 10 July 2020. The South Korean market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 6.0% over the same period.