Valuation Update With 7 Day Price Move • May 12
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₩947, the stock trades at a trailing P/E ratio of 20.2x. Average trailing P/E is 11x in the Consumer Durables industry in South Korea. Total loss to shareholders of 70% over the past three years. New Risk • Apr 01
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 55% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (55% accrual ratio). Minor Risk Market cap is less than US$100m (₩90.4b market cap, or US$59.9m). Announcement • Mar 12
Dreamus Company, Annual General Meeting, Mar 27, 2026 Dreamus Company, Annual General Meeting, Mar 27, 2026, at 09:01 Tokyo Standard Time. Location: main hall, 311, gangnam-daero, seocho-gu, seoul South Korea Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩1,098, the stock trades at a trailing P/E ratio of 34.5x. Average trailing P/E is 9x in the Consumer Durables industry in South Korea. Total loss to shareholders of 69% over the past three years. Announcement • Sep 04
An undisclosed buyer agreed to acquire 10.01% stake in Beyond Music Company from Dreamus Company (KOSDAQ:A060570) for KRW 22 billion. An undisclosed buyer agreed to acquire 10.01% stake in Beyond Music Company from Dreamus Company (KOSDAQ:A060570) for KRW 22 billion on September 2, 2025. The expected completion of the transaction is October 10, 2025. New Risk • Aug 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩130.1b (US$93.5m) 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 Share price has been volatile over the past 3 months (8.4% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (₩130.1b market cap, or US$93.5m). New Risk • Aug 16
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 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.0% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to ₩2,350, the stock trades at a trailing P/E ratio of 55.2x. Average trailing P/E is 9x in the Consumer Durables industry in South Korea. Total loss to shareholders of 35% over the past three years. Buy Or Sell Opportunity • Jul 30
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 32% to ₩2,140. The fair value is estimated to be ₩1,771, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 8.0% over the last 3 years. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩1,971, the stock trades at a trailing P/E ratio of 47.3x. Average trailing P/E is 11x in the Consumer Durables industry in South Korea. Total loss to shareholders of 40% over the past three years. Announcement • May 21
Dreamus Company (KOSDAQ:A060570) announces an Equity Buyback for 1,520,000 shares, for KRW 3,800 million. Dreamus Company (KOSDAQ:A060570) announces a share repurchase program. Under the program, the company will repurchase up to 1,520,000 shares for KRW 3,800 million. The shares will be repurchased at a price of KRW 2,500 per share. The purpose of the offer is to burn treasury stocks and enhance shareholder value. The offer will expire on June 10, 2025. As of May 20, 2025, the company had 0 shares in treasury within scope available for dividend and had 38,656 shares under other acquisitions. Reported Earnings • Mar 14
Full year 2024 earnings released: ₩36.86 loss per share (vs ₩47.25 loss in FY 2023) Full year 2024 results: ₩36.86 loss per share. Revenue: ₩225.1b (down 1.7% from FY 2023). Net loss: ₩2.79b (loss widened 3.7% from FY 2023). Announcement • Mar 14
Dreamus Company, Annual General Meeting, Mar 28, 2025 Dreamus Company, Annual General Meeting, Mar 28, 2025, at 09:00 Tokyo Standard Time. Location: main hall, 311, gangnam-daero, seocho-gu, seoul South Korea New Risk • Dec 08
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended September 2013. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risk Latest financial reports are more than 1 year old (reported September 2013 fiscal period end). Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Shareholders have been diluted in the past year (33% increase in shares outstanding). Market cap is less than US$100m (₩112.0b market cap, or US$78.7m). New Risk • Oct 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩132.2b (US$97.2m) 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: Major Risk Less than 1 year of cash runway based on free cash flow trend (-₩50b free cash flow). Minor Risks Shareholders have been diluted in the past year (33% increase in shares outstanding). Market cap is less than US$100m (₩132.2b market cap, or US$97.2m). New Risk • Aug 28
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -₩50b This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-₩50b free cash flow). Minor Risk Shareholders have been diluted in the past year (33% increase in shares outstanding). 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 7.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.9% average weekly change). Shareholders have been diluted in the past year (33% increase in shares outstanding). Reported Earnings • Mar 15
Full year 2023 earnings released: ₩51.00 loss per share (vs ₩480 profit in FY 2022) Full year 2023 results: ₩51.00 loss per share (down from ₩480 profit in FY 2022). Revenue: ₩270.3b (down 1.5% from FY 2022). Net loss: ₩2.90b (down 111% from profit in FY 2022). Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. New Risk • Jan 19
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 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Shareholders have been diluted in the past year (33% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩3,520, the stock trades at a trailing P/E ratio of 11.8x. Average trailing P/E is 16x in the Consumer Durables industry in South Korea. Total loss to shareholders of 31% over the past three years. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to ₩4,435, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 13x in the Consumer Durables industry in South Korea. Total loss to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩3,450, the stock trades at a trailing P/E ratio of 6.4x. Average trailing P/E is 12x in the Consumer Durables industry in South Korea. Total loss to shareholders of 37% over the past three years. 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. No experienced directors. 3 highly experienced directors. No independent directors (3 non-independent directors). Director Jae Lee was the last director to join the board, commencing their role in 2011. 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 • 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. No experienced directors. 3 highly experienced directors. No independent directors (3 non-independent directors). Director Jae Lee was the last director to join the board, commencing their role in 2011. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Mar 28
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: ₩283 loss per share (up from ₩406 loss in FY 2020). Revenue: ₩244.2b (up 7.9% from FY 2020). Net loss: ₩16.1b (loss narrowed 30% from FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2,730%. Over the next year, revenue is forecast to grow 12%, compared to a 7.4% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Buying Opportunity • Jan 24
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 3.0%. The fair value is estimated to be ₩6,056, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% per annum over the last 3 years. Earnings per share has grown by 3.8% per annum over the last 3 years. Announcement • May 01
Dreamus Company announced that it expects to receive KRW 70.000001417 billion in funding Dreamus Company (KOSDAQ:A060570) announced a private placement of 13,135,673 registered convertible preferred shares at a price of KRW 5,329 per share for gross proceeds of KRW 70,000,001,417 on April 30, 2021. The company is raising funding through third party allotment method. The transaction will include participation from new investor Neospes LLC. The preference shares will be convertible into 13,135,673 common shares of Dream Earth company. The conversion period will start from June 16, 2022 to June 15, 2031. The payment date is June 15, 2021. All securities issued ill be subject to a hold period of one year. The transaction has been approved by the board of directors of the company. Is New 90 Day High Low • Jan 20
New 90-day high: ₩5,630 The company is up 14% from its price of ₩4,935 on 22 October 2020. The South Korean market is up 28% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Durables industry, which is up 35% over the same period. Is New 90 Day High Low • Dec 15
New 90-day high: ₩5,310 The company is up 2.0% from its price of ₩5,190 on 16 September 2020. The South Korean market is up 12% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Consumer Durables industry, which is flat over the same period.