Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩2,150, the stock trades at a trailing P/E ratio of 12.7x. Average trailing P/E is 8x in the Luxury industry in South Korea. Total loss to shareholders of 68% over the past three years. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩2,835, the stock trades at a trailing P/E ratio of 16.8x. Average trailing P/E is 8x in the Luxury industry in South Korea. Total loss to shareholders of 61% over the past three years. New Risk • May 26
New major risk - Revenue and earnings growth Earnings have declined by 22% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 22% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩67.1b market cap, or US$44.4m). Reported Earnings • Mar 24
Full year 2025 earnings released: EPS: ₩172 (vs ₩25.00 in FY 2024) Full year 2025 results: EPS: ₩172 (up from ₩25.00 in FY 2024). Revenue: ₩71.0b (up 6.1% from FY 2024). Net income: ₩3.45b (up ₩2.95b from FY 2024). Profit margin: 4.9% (up from 0.7% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Announcement • Mar 17
Zero to Seven Inc., Annual General Meeting, Mar 27, 2026 Zero to Seven Inc., Annual General Meeting, Mar 27, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 22, teheran-ro 7-gil, gangnam-gu, seoul South Korea Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩3,380, the stock trades at a trailing P/E ratio of 36.8x. Average trailing P/E is 12x in the Luxury industry in South Korea. Total loss to shareholders of 62% over the past three years. Announcement • Feb 09
Zero to Seven Inc. (KOSDAQ:A159580) announces an Equity Buyback for KRW 2,000 million worth of its shares. Zero to Seven Inc. (KOSDAQ:A159580) announces a share repurchase program. Under the program, the company will repurchase up to KRW 2,000 million pursuant contract with Samsung Securities. The purpose of this acquisition is to enhance shareholder value and employee compensation purposes. The authority shall expire on August 10, 2026. As of February 8, 2026, the company had 0 shares under distributable profits and had 30,329 treasury shares under other stocks. Upcoming Dividend • Dec 22
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 13 April 2026. Payout ratio is a comfortable 54% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of South Korean dividend payers (3.6%). Lower than average of industry peers (2.4%). Declared Dividend • Nov 08
Dividend of ₩50.00 announced Dividend of ₩50.00 is the same as last year. Ex-date: 29th December 2025 Payment date: 13th April 2026 Dividend yield will be 1.2%, which is lower than the industry average of 2.8%. Sustainability & Growth Dividend is covered by earnings (68% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has not increased over the past 2 years but payments have been stable during that time. The company's earnings per share (EPS) would need to decline by 24% to shift the payout ratio to a potentially unsustainable range, which is more than the 14% EPS decline seen over the last 5 years. Announcement • Nov 07
Zero to Seven Inc. announces Annual dividend, payable on April 13, 2026 Zero to Seven Inc. announced Annual dividend of KRW 50.0000 per share payable on April 13, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. New Risk • Sep 01
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.2% 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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 9.4% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩89.3b market cap, or US$64.2m). Announcement • Mar 14
Zero to Seven Inc., Annual General Meeting, Mar 28, 2025 Zero to Seven Inc., Annual General Meeting, Mar 28, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 189, seongam-ro, mapo-gu, seoul South Korea New Risk • Dec 23
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 9.2% 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 Earnings have declined by 12% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.2% average weekly change). Market cap is less than US$100m (₩105.2b market cap, or US$72.6m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 14 April 2025. The company is not currently making a profit and is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of South Korean dividend payers (3.9%). Lower than average of industry peers (3.0%). New Risk • Aug 28
New major risk - Revenue and earnings growth Earnings have declined by 4.2% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.2% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩89.7b market cap, or US$67.2m). New Risk • Aug 05
New minor risk - Dividend sustainability The dividend is not well covered by earnings. The company is paying a dividend despite being loss-making. Dividend yield: 1.2% 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 Paying a dividend despite being loss-making. Market cap is less than US$100m (₩80.1b market cap, or US$58.7m). New Risk • Mar 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 76% 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 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 (1.4% net profit margin). Market cap is less than US$100m (₩120.2b market cap, or US$89.0m). Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩6,610, the stock trades at a trailing P/E ratio of 25.3x. Average trailing P/E is 7x in the Luxury industry in South Korea. Total loss to shareholders of 23% over the past three years. Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩6,570, the stock trades at a trailing P/E ratio of 15x. Average forward P/E is 4x in the Luxury industry in South Korea. Total loss to shareholders of 28% over the past three years. 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 ₩6,320, the stock trades at a trailing P/E ratio of 13.2x. Average forward P/E is 5x in the Luxury industry in South Korea. Total loss to shareholders of 14% over the past three years. New Risk • Jun 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩130.9b (US$99.1m) 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. Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: ₩514 (vs ₩301 in FY 2021) Full year 2022 results: EPS: ₩514 (up from ₩301 in FY 2021). Revenue: ₩90.4b (up 4.7% from FY 2021). Net income: ₩10.2b (up 71% from FY 2021). Profit margin: 11% (up from 6.9% in FY 2021). Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 26% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Dec 09
Investor sentiment improved over the past week After last week's 16% share price gain to ₩7,540, the stock trades at a trailing P/E ratio of 76.4x. Average forward P/E is 5x in the Luxury industry in South Korea. Total loss to shareholders of 23% over the past three years. Price Target Changed • Nov 16
Price target decreased to ₩12,000 Down from ₩17,500, the current price target is provided by 1 analyst. New target price is 88% above last closing price of ₩6,370. Stock is down 43% over the past year. The company posted earnings per share of ₩59.06 last year. Major Estimate Revision • Aug 18
Consensus EPS estimates fall to ₩348 The consensus outlook for earnings per share (EPS) in 2021 has deteriorated. 2021 revenue forecast decreased from ₩125.9m to ₩121.9m. EPS estimate also fell from ₩526 to ₩348. Net income forecast to grow 1,272% next year vs 43% growth forecast for Luxury industry in South Korea. Consensus price target down from ₩17,500 to ₩17,000. Share price fell 5.3% to ₩10,800 over the past week. Price Target Changed • May 11
Price target increased to ₩13,500 Up from ₩11,500, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of ₩13,850. Stock is up 69% over the past year. Reported Earnings • Mar 14
Full year 2020 earnings released: ₩31.00 loss per share (vs ₩442 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: ₩141.0b (down 34% from FY 2019). Net loss: ₩614.2m (down 107% from profit in FY 2019). Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 22
New 90-day high: ₩10,300 The company is up 29% from its price of ₩8,010 on 24 November 2020. The South Korean market is up 18% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 17% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩4,586 per share. Is New 90 Day High Low • Feb 04
New 90-day high: ₩9,490 The company is up 29% from its price of ₩7,330 on 06 November 2020. The South Korean market is up 27% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩7,495 per share. Is New 90 Day High Low • Dec 16
New 90-day high: ₩9,300 The company is up 32% from its price of ₩7,050 on 16 September 2020. The South Korean market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩8,075 per share. Valuation Update With 7 Day Price Move • Nov 25
Market bids up stock over the past week After last week's 19% share price gain to ₩9,130, the stock is trading at a trailing P/E ratio of 68.2x, up from the previous P/E ratio of 57.2x. This compares to an average P/E of 14x in the Luxury industry in South Korea. Total returns to shareholders over the past three years are 49%. Valuation Update With 7 Day Price Move • Nov 11
Market bids up stock over the past week After last week's 21% share price gain to ₩8,160, the stock is trading at a trailing P/E ratio of 60.9x, up from the previous P/E ratio of 50.5x. This compares to an average P/E of 14x in the Luxury industry in South Korea. Total returns to shareholders over the past three years are 53%. Is New 90 Day High Low • Nov 09
New 90-day high: ₩7,550 The company is up 9.0% from its price of ₩6,950 on 11 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Luxury industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩7,119 per share.