Board Change • May 29
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Outside Director Ki-Haeng Cho was the last director to join the board, commencing their role in 2026. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • May 22
Consensus EPS estimates increase by 31%, revenue downgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast fell from ₩1.19b to ₩1.18b. EPS estimate rose from ₩545 to ₩714. Net income forecast to grow 46% next year vs 45% growth forecast for Trade Distributors industry in South Korea. Consensus price target of ₩6,667 unchanged from last update. Share price rose 3.7% to ₩4,825 over the past week. Upcoming Dividend • Apr 27
Upcoming dividend of ₩80.00 per share Eligible shareholders must have bought the stock before 04 May 2026. Payment date: 20 May 2026. Payout ratio is a comfortable 67% but the company is paying out more than the cash it is generating. Trailing yield: 6.3%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.6%). Price Target Changed • Mar 06
Price target increased by 12% to ₩6,667 Up from ₩5,967, the current price target is an average from 3 analysts. New target price is 34% above last closing price of ₩4,960. Stock is up 27% over the past year. The company is forecast to post earnings per share of ₩623 for next year compared to ₩443 last year. Price Target Changed • Feb 27
Price target increased by 7.1% to ₩6,300 Up from ₩5,880, the current price target is an average from 3 analysts. New target price is 23% above last closing price of ₩5,130. Stock is up 32% over the past year. The company is forecast to post earnings per share of ₩623 for next year compared to ₩443 last year. Valuation Update With 7 Day Price Move • Jan 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩5,290, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 10x in the Trade Distributors industry in South Korea. Total loss to shareholders of 11% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩7,474 per share. New Risk • Nov 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: 1.1% Last year net profit margin: 2.8% 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: Major Risks Interest payments are not well covered by earnings (1.0x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 98% Cash payout ratio: 141% Minor Risk Profit margins are more than 30% lower than last year (1.1% net profit margin). Major Estimate Revision • Nov 20
Consensus EPS estimates increase by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from ₩1.05b to ₩1.07b. EPS estimate increased from ₩508 to ₩593 per share. Net income forecast to grow 53% next year vs 53% growth forecast for Trade Distributors industry in South Korea. Consensus price target of ₩5,700 unchanged from last update. Share price rose 5.9% to ₩4,750 over the past week. Buy Or Sell Opportunity • Oct 22
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 5.7% to ₩4,440. The fair value is estimated to be ₩3,676, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.5% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 93% in the next 2 years. Announcement • Feb 11
AJ Networks Co.,Ltd., Annual General Meeting, Mar 26, 2025 AJ Networks Co.,Ltd., Annual General Meeting, Mar 26, 2025, at 09:01 Tokyo Standard Time. Location: conference room, 9, jeongui-ro 8-gil, songpa-gu, seoul South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩270 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 15 April 2025. Payout ratio is a comfortable 40% but the company is not cash flow positive. Trailing yield: 5.7%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (3.2%). Major Estimate Revision • Aug 20
Consensus EPS estimates fall by 24%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from ₩1.03b to ₩1.06b. EPS estimate fell from ₩669 to ₩505 per share. Net income forecast to grow 70% next year vs 53% growth forecast for Trade Distributors industry in South Korea. Consensus price target of ₩7,000 unchanged from last update. Share price rose 3.6% to ₩4,480 over the past week. Buy Or Sell Opportunity • Jun 12
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 5.0% to ₩4,735. The fair value is estimated to be ₩3,946, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 10% in 2 years. Earnings are forecast to grow by 176% in the next 2 years. Reported Earnings • Mar 23
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: ₩351 (down from ₩473 in FY 2022). Revenue: ₩1.00t (down 16% from FY 2022). Net income: ₩15.8b (down 25% from FY 2022). Profit margin: 1.6% (down from 1.8% in FY 2022). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 15%. Revenue is forecast to grow 5.8% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Trade Distributors industry in South Korea. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Mar 18
Now 27% overvalued Over the last 90 days, the stock has fallen 5.0% to ₩4,710. The fair value is estimated to be ₩3,708, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Upcoming Dividend • Dec 20
Upcoming dividend of ₩270 per share at 5.5% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. The company is not currently making a profit and there are not enough cash flows to support it either. Trailing yield: 5.5%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.9%). Announcement • Oct 24
AJ Networks Co.,Ltd. (KOSE:A095570) announces an Equity Buyback for KRW 7,000 million worth of its shares. AJ Networks Co., Ltd. (KOSE:A095570) announces a share repurchase program. Under the program, the company will repurchase up to KRW 7,000 million worth of its shares, pursuant to contract with Korea Investment & Securities Co., Ltd. The purpose of the program is to improve shareholder value for stock price stability. The program will be valid until April 23, 2024. As of October 22, 2023, the company had 0 shares in treasury under the dividend capacity and 0 shares in treasury under other capacities. New Risk • Aug 20
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 246% The company is paying a dividend despite having no free cash flows. Dividend yield: 6.4% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough 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. 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: Major Risks Interest payments are not well covered by earnings (2.1x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 246% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.4% net profit margin). Reported Earnings • Aug 19
Second quarter 2023 earnings released: ₩23.53 loss per share (vs ₩222 profit in 2Q 2022) Second quarter 2023 results: ₩23.53 loss per share (down from ₩222 profit in 2Q 2022). Revenue: ₩239.8b (down 13% from 2Q 2022). Net loss: ₩1.01b (down 110% from profit in 2Q 2022). Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Trade Distributors industry in South Korea. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩498 (vs ₩275 in FY 2021) Full year 2022 results: EPS: ₩498 (up from ₩275 in FY 2021). Revenue: ₩1.21t (up 23% from FY 2021). Net income: ₩22.3b (up 81% from FY 2021). Profit margin: 1.8% (up from 1.3% in FY 2021). Revenue is forecast to grow 9.3% p.a. on average during the next 2 years, while revenues in the Trade Distributors industry in South Korea are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Price Target Changed • Feb 23
Price target decreased by 22% to ₩7,300 Down from ₩9,400, the current price target is provided by 1 analyst. New target price is 34% above last closing price of ₩5,460. Stock is up 3.0% over the past year. The company posted earnings per share of ₩191 last year. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₩5,310, the stock trades at a trailing P/E ratio of 12.4x. Average forward P/E is 8x in the Trade Distributors industry in South Korea. Total returns to shareholders of 24% over the past three years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩270 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 24 April 2023. Payout ratio is a comfortable 63% but the company is not cash flow positive. Trailing yield: 4.6%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (4.1%). Valuation Update With 7 Day Price Move • Oct 25
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ₩6,010, the stock trades at a trailing P/E ratio of 11.6x. Average forward P/E is 8x in the Trade Distributors industry in South Korea. Total returns to shareholders of 69% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩210 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 April 2022. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 4.0%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (3.0%). Announcement • Mar 10
AJ Networks Co.,Ltd., Annual General Meeting, Mar 30, 2021 AJ Networks Co.,Ltd., Annual General Meeting, Mar 30, 2021, at 09:00 Korea Standard Time. Is New 90 Day High Low • Feb 26
New 90-day low: ₩3,885 The company is down 16% from its price of ₩4,610 on 27 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 Trade Distributors industry, which is up 34% over the same period. Is New 90 Day High Low • Feb 08
New 90-day low: ₩3,995 The company is down 6.0% from its price of ₩4,265 on 10 November 2020. The South Korean market is up 25% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Trade Distributors industry, which is up 37% over the same period. Is New 90 Day High Low • Jan 05
New 90-day high: ₩4,935 The company is up 50% from its price of ₩3,280 on 07 October 2020. The South Korean market is up 23% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Trade Distributors industry, which is up 16% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩150 Per Share Will be paid on the 23rd of April to those who are registered shareholders by the 29th of December. The trailing yield of 2.2% is below the top quartile of South Korean dividend payers (2.6%), and is lower than industry peers (3.3%). Announcement • Nov 06
AutoPlus. Co. Ltd. won a bid to acquire 77.29% stake in AJ Sellcar Co., Ltd. from AJ Networks Co., Ltd. (KOSE:A095570). AutoPlus. Co. Ltd. won a bid to acquire 77.29% stake in AJ Sellcar Co., Ltd. from AJ Networks Co., Ltd. (KOSE:A095570) on November 4, 2020. AutoPlus was selected as the preferred bidder in the transaction. The terms of the deal were not disclosed however industry speculation pegs the deal value of KRW 100 billion, as reported by www.koreatimes.co.kr. Is New 90 Day High Low • Nov 04
New 90-day high: ₩4,170 The company is up 29% from its price of ₩3,225 on 06 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 Trade Distributors industry, which is down 1.0% over the same period. Is New 90 Day High Low • Oct 19
New 90-day high: ₩3,905 The company is up 10.0% from its price of ₩3,565 on 21 July 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Trade Distributors industry, which is down 3.0% over the same period. Announcement • Aug 29
AJ Networks Co., Ltd. (KOSE:A095570) acquired remaining 44.9% stake in Ajpark.Co., Ltd from Medici Investment Co., Ltd. and Medici Small Medium Leading Company Fund. AJ Networks Co., Ltd. (KOSE:A095570) acquired remaining 44.9% stake in Ajpark.Co., Ltd from Medici Investment Co., Ltd. and Medici Small Medium Leading Company Fund for approximately KRW 67.4 billion on August 28, 2020. the consideration shall be paid in cash. As per the terms, AJ Networks Co., Ltd. shall acquire approximately 1.4 million shares from Medici Investment Co., Ltd. and approximately 0.1 million shares from Medici Small Medium Leading Company Fund. For the year ending December 31, 2019, total asset, net asset, revenue, net loss of Ajpark.Co., Ltd was respectively approximately KRW 260 billion, approximately KRW 31 billion, approximately KRW 136.9 billion and approximately KRW 36.3 billion. The board of AJ Networks Co., Ltd. has resolved the transaction on August 28, 2020.
AJ Networks Co., Ltd. (KOSE:A095570) completed the acquisition of remaining 44.9% stake in Ajpark.Co., Ltd from Medici Investment Co., Ltd. and Medici Small Medium Leading Company Fund on August 28, 2020. Announcement • Jul 30
Jihoi Moon and Sun Woo Moon acquired 5% in AJ Networks Co., Ltd. (KOSE:A095570) from FinVentures UK Limited for KRW 8 billion. Jihoi Moon and Sun Woo Moon acquired 5% in AJ Networks Co., Ltd. (KOSE:A095570) from FinVentures UK Limited for KRW 8 billion on July 14, 2020. Jihoi Moon and Sun Woo Moon equally acquired 2.3 million shares at KRW 3437 per share. Post completion, Jihoi Moon and Sun Woo Moon hold 6.6 million shares each and FinVentures UK Limited holds 3 million shares in AJ Networks Co., Ltd. The consideration is funded by the buyers from internal funds of KRW 223.2 million each and borrowings of KRW 3.8 billion each from KB Securities and Korea Investment & Securities Co., Ltd.
Jihoi Moon and Sun Woo Moon completed the acquisition of 5% in AJ Networks Co., Ltd. (KOSE:A095570) from FinVentures UK Limited on July 14, 2020. 
