New Risk • May 24
New major risk - Revenue and earnings growth Earnings have declined by 34% 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 Risks Less than 1 year of cash runway based on free cash flow trend (-₩12b free cash flow). Earnings have declined by 34% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩84.3b market cap, or US$55.4m). Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to ₩3,625, the stock trades at a trailing P/E ratio of 51.3x. Average trailing P/E is 8x in the Luxury industry in South Korea. Total loss to shareholders of 32% over the past three years. Reported Earnings • Mar 20
Full year 2025 earnings released: EPS: ₩71.00 (vs ₩4,029 loss in FY 2024) Full year 2025 results: EPS: ₩71.00 (up from ₩4,029 loss in FY 2024). Revenue: ₩889.5b (down 5.3% from FY 2024). Net income: ₩2.33b (up ₩134.9b from FY 2024). Profit margin: 0.3% (up from net loss in FY 2024). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 19
Third quarter 2025 earnings released: ₩99.00 loss per share (vs ₩643 loss in 3Q 2024) Third quarter 2025 results: ₩99.00 loss per share (improved from ₩643 loss in 3Q 2024). Revenue: ₩210.2b (down 11% from 3Q 2024). Net loss: ₩3.25b (loss narrowed 85% from 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 fallen by 20% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: ₩273 (vs ₩563 loss in 2Q 2024) Second quarter 2025 results: EPS: ₩273 (up from ₩563 loss in 2Q 2024). Revenue: ₩224.5b (down 6.6% from 2Q 2024). Net income: ₩8.98b (up ₩27.5b from 2Q 2024). Profit margin: 4.0% (up from net loss in 2Q 2024). Over the last 3 years on average, earnings per share has fallen by 23% per year whereas the company’s share price has fallen by 18% per year. Board Change • Aug 05
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Director Seokhwan Yoon was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 20
First quarter 2025 earnings released: EPS: ₩101 (vs ₩381 loss in 1Q 2024) First quarter 2025 results: EPS: ₩101 (up from ₩381 loss in 1Q 2024). Revenue: ₩240.1b (up 7.2% from 1Q 2024). Net income: ₩3.32b (up ₩15.8b from 1Q 2024). Profit margin: 1.4% (up from net loss in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 26% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 20
Full year 2024 earnings released: ₩4,029 loss per share (vs ₩3,281 loss in FY 2023) Full year 2024 results: ₩4,029 loss per share (further deteriorated from ₩3,281 loss in FY 2023). Revenue: ₩939.4b (up 1.3% from FY 2023). Net loss: ₩132.6b (loss widened 23% from FY 2023). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Announcement • Feb 27
Huvis Corporation, Annual General Meeting, Mar 25, 2025 Huvis Corporation, Annual General Meeting, Mar 25, 2025, at 09:30 Tokyo Standard Time. Location: conference room, 16, seolleung-ro 131-gil, gangnam-gu, seoul South Korea 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 Risk Market cap is less than US$100m (₩97.9b market cap, or US$74.4m). Reported Earnings • Mar 20
Full year 2023 earnings released: ₩3,281 loss per share (vs ₩2,448 loss in FY 2022) Full year 2023 results: ₩3,281 loss per share (further deteriorated from ₩2,448 loss in FY 2022). Revenue: ₩927.7b (down 9.2% from FY 2022). Net loss: ₩108.0b (loss widened 34% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. New Risk • Jan 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩132.8b (US$98.7m) 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: Major Risks Debt is not well covered by operating cash flow (2.9% operating cash flow to total debt). Earnings have declined by 51% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩132.8b market cap, or US$98.7m). New Risk • Aug 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 11% 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 46% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (11% average weekly change). New Risk • Jul 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩127.0b (US$99.3m) 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 39% 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 (₩127.0b market cap, or US$99.3m). Reported Earnings • May 21
First quarter 2023 earnings released: ₩665 loss per share (vs ₩304 loss in 1Q 2022) First quarter 2023 results: ₩665 loss per share (further deteriorated from ₩304 loss in 1Q 2022). Revenue: ₩228.1b (down 19% from 1Q 2022). Net loss: ₩21.9b (loss widened 118% from 1Q 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 09
Full year 2022 earnings released: ₩2,448 loss per share (vs ₩111 profit in FY 2021) Full year 2022 results: ₩2,448 loss per share (down from ₩111 profit in FY 2021). Revenue: ₩1.02t (down 5.6% from FY 2021). Net loss: ₩80.6b (down ₩84.2b from profit in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 64 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Dec 21
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 24 April 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 6.0%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.1%). Reported Earnings • Nov 20
Third quarter 2022 earnings released: ₩648 loss per share (vs ₩98.00 loss in 3Q 2021) Third quarter 2022 results: ₩648 loss per share (further deteriorated from ₩98.00 loss in 3Q 2021). Revenue: ₩247.2b (down 11% from 3Q 2021). Net loss: ₩21.3b (loss widened ₩18.1b from 3Q 2021). Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • May 19
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: ₩304 loss per share (down from ₩272 profit in 1Q 2021). Revenue: ₩281.6b (up 9.5% from 1Q 2021). Net loss: ₩10.0b (down 212% from profit in 1Q 2021). Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) were also behind analyst expectations. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 13
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: ₩111 (down from ₩2,497 in FY 2020). Revenue: ₩1.08t (up 18% from FY 2020). Net income: ₩3.65b (down 96% from FY 2020). Profit margin: 0.3% (down from 8.9% in FY 2020). Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) also missed analyst estimates by 29%. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 22
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 27 April 2022. Payout ratio is a comfortable 15% but the company is not cash flow positive. Trailing yield: 3.4%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.8%). Reported Earnings • Nov 19
Third quarter 2021 earnings released: ₩98.00 loss per share (vs ₩352 profit in 3Q 2020) The company reported a soft third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: ₩278.0b (up 7.5% from 3Q 2020). Net loss: ₩3.24b (down 128% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 19
First quarter 2021 earnings released: EPS ₩272 (vs ₩111 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ₩257.2b (up 14% from 1Q 2020). Net income: ₩8.95b (up 145% from 1Q 2020). Profit margin: 3.5% (up from 1.6% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment improved over the past week After last week's 22% share price gain to ₩10,700, the stock trades at a trailing P/E ratio of 4.3x. Average trailing P/E is 19x in the Luxury industry in South Korea. Total returns to shareholders of 5.7% over the past three years. Announcement • Mar 12
Huvis Corporation, Annual General Meeting, Mar 30, 2021 Huvis Corporation, Annual General Meeting, Mar 30, 2021, at 09:30 Korea Standard Time. Is New 90 Day High Low • Feb 10
New 90-day high: ₩8,730 The company is up 1.0% from its price of ₩8,650 on 12 November 2020. The South Korean market is up 23% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 13% over the same period. Is New 90 Day High Low • Jan 13
New 90-day low: ₩7,940 The company is down 2.0% from its price of ₩8,090 on 15 October 2020. The South Korean market is up 29% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 8.0% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩150 Per Share Will be paid on the 22nd of April to those who are registered shareholders by the 29th of December. The trailing yield of 3.6% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (1.4%). Announcement • Oct 18
An unknown buyer agreed to acquire 16.52% stake in TSK Corporation from Huvis Corporation (KOSE:A079980) for approximately KRW 190 billion. An unknown buyer agreed to acquire 16.52% stake in TSK Corporation from Huvis Corporation (KOSE:A079980) for approximately KRW 190 billion on October 16, 2020. Under the terms of the transaction, the buyer will acquire 0.16 million shares of TSK. Upon completion, Huvis will no longer hold any stake in TSK. The transaction was approved by the Board of Directors of Huvis and is expected to complete on December 31, 2020.