Major Estimate Revision • May 13
Consensus EPS estimates fall by 500% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ₩645.8m to ₩620.8m. Losses expected to increase from ₩6.00 per share to ₩36.00. Consumer Services industry in South Korea expected to see average net income growth of 37% next year. Consensus price target down from ₩2,000 to ₩1,500. Share price fell 9.8% to ₩1,317 over the past week. New Risk • Apr 09
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 3.9% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining 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: 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 (₩119.9b market cap, or US$81.1m). Announcement • Mar 10
Daekyo Co., Ltd., Annual General Meeting, Mar 26, 2026 Daekyo Co., Ltd., Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 23, boramae-ro 3-gil, gwanak-gu, seoul South Korea Price Target Changed • Nov 17
Price target decreased by 23% to ₩2,000 Down from ₩2,600, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of ₩1,954. Stock is down 16% over the past year. The company is forecast to post a net loss per share of ₩38.00 next year compared to a net loss per share of ₩87.80 last year. Reported Earnings • Nov 09
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: ₩160.6b (down 4.9% from 3Q 2024). Net loss: ₩600.0m (down 113% from profit in 3Q 2024). Revenue is expected to decline by 2.6% p.a. on average during the next 3 years, while revenues in the Consumer Services industry in South Korea are expected to grow by 7.1%. Over the last 3 years on average, earnings per share has increased by 53% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Sep 23
Daekyo Co., Ltd. announced that it expects to receive KRW 5 billion in funding from Samsung Securities Co.,Ltd. Daekyo Co., Ltd. announced a private placement to issue Zero Coupon Series 1 Bearer Unsecured Privately issued Convertible Bonds due October 2, 2030 for gross proceeds of KRW 5,000,000,000 on September 22, 2205. The transaction will include participation from new investor Samsung Securities Co.,Ltd. for KTW 5,000,000,000. The transaction has been approved by shareholders, expected to close on October 2, 2025, 100% convertible into 1,960,015 shares at a fixed conversion price of KRW 2,551 from October 10, 2025 to September 2, 2030, bears zero coupon rate, 1% coupon rate and matures on October 2, 2030. Reported Earnings • Mar 21
Full year 2024 earnings released: ₩503 loss per share (vs ₩1,406 loss in FY 2023) Full year 2024 results: ₩503 loss per share (improved from ₩1,406 loss in FY 2023). Revenue: ₩663.5b (up 1.1% from FY 2023). Net loss: ₩6.53b (loss narrowed 93% from FY 2023). Revenue is expected to decline by 1.8% p.a. on average during the next 2 years, while revenues in the Consumer Services industry in South Korea are expected to grow by 3.0%. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Announcement • Mar 11
Daekyo Co., Ltd., Annual General Meeting, Mar 25, 2025 Daekyo Co., Ltd., Annual General Meeting, Mar 25, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 23, boramae-ro 3-gil, gwanak-gu, seoul South Korea Reported Earnings • Feb 13
Full year 2024 earnings released: EPS: ₩76.26 (vs ₩1,151 loss in FY 2023) Full year 2024 results: EPS: ₩76.26 (up from ₩1,151 loss in FY 2023). Revenue: ₩664.0b (flat on FY 2023). Net income: ₩6.20b (up ₩100.7b from FY 2023). Profit margin: 0.9% (up from net loss in FY 2023). Revenue is expected to decline by 1.8% p.a. on average during the next 2 years, while revenues in the Consumer Services industry in South Korea are expected to grow by 3.9%. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. New Risk • Aug 23
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: -₩47b 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. This is currently the only risk that has been identified for the company. New Risk • Jun 21
New major risk - Revenue and earnings growth Earnings have declined by 61% 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. This is currently the only risk that has been identified for the company. New Risk • Mar 31
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 2 years. Trailing 12-month net loss: ₩94b Forecast net loss in 2 years: ₩9.4b This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 20
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: ₩1,389 loss per share (improved from ₩1,959 loss in FY 2022). Revenue: ₩659.7b (down 3.4% from FY 2022). Net loss: ₩93.8b (loss narrowed 30% from FY 2022). Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates significantly. Revenue is forecast to stay flat during the next 2 years compared to a 15% growth forecast for the Consumer Services industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Reported Earnings • Nov 07
Third quarter 2023 earnings released: ₩118 loss per share (vs ₩136 loss in 3Q 2022) Third quarter 2023 results: ₩118 loss per share. Revenue: ₩161.5b (down 5.2% from 3Q 2022). Net loss: ₩9.70b (loss widened 14% from 3Q 2022). Revenue is forecast to stay flat during the next 3 years compared to a 16% growth forecast for the Consumer Services industry in Asia. New Risk • Nov 01
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩35.4b (US$26.2m) 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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 26
Second quarter 2023 earnings released: ₩187 loss per share (vs ₩112 loss in 2Q 2022) Second quarter 2023 results: ₩187 loss per share (further deteriorated from ₩112 loss in 2Q 2022). Revenue: ₩164.4b (flat on 2Q 2022). Net loss: ₩14.0b (loss widened 80% from 2Q 2022). Revenue is expected to decline by 1.1% p.a. on average during the next 3 years, while revenues in the Consumer Services industry in Asia are expected to grow by 18%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Jun 22
Upcoming dividend of ₩30.00 per share at 2.9% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 31 July 2023. The company is not currently making a profit but it is cash flow positive. Trailing yield: 2.9%. Lower than top quartile of South Korean dividend payers (3.2%). Lower than average of industry peers (3.5%). Reported Earnings • Mar 24
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: ₩1,959 loss per share (further deteriorated from ₩650 loss in FY 2021). Revenue: ₩683.1b (up 7.0% from FY 2021). Net loss: ₩134.1b (loss widened 207% from FY 2021). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates significantly. Revenue is expected to decline by 1.5% p.a. on average during the next 2 years, while revenues in the Consumer Services industry in Asia are expected to grow by 17%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 89 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Dec 21
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 31 March 2023. The company is not currently making a profit but it is cash flow positive. Trailing yield: 3.0%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (3.4%). Buying Opportunity • Nov 22
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 11%. The fair value is estimated to be ₩3,401, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 6.7% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to grow by 1.6% in a year. Earnings is forecast to grow by 72% in the next year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Independent Outside Director Seung-Ho Lee was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Major Estimate Revision • Jul 29
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 expected loss increased from -₩281 to -₩460 per share. Revenue forecast unchanged at ₩664.5m. Consumer Services industry in South Korea expected to see average net income growth of 25% next year. Consensus price target down from ₩4,450 to ₩4,100. Share price was steady at ₩3,080 over the past week. Upcoming Dividend • Jun 22
Upcoming dividend of ₩30.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 30 July 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 2.7%. Lower than top quartile of South Korean dividend payers (3.2%). Lower than average of industry peers (3.2%). Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 5 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Independent Outside Director Seung-Ho Lee was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 05 April 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.6%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (2.3%). Upcoming Dividend • Dec 22
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 05 April 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 1.6%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (2.3%). Upcoming Dividend • Jun 22
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 30 July 2021. Trailing yield: 1.9%. Lower than top quartile of South Korean dividend payers (2.1%). In line with average of industry peers (2.1%). Is New 90 Day High Low • Mar 08
New 90-day high: ₩4,085 The company is up 12% from its price of ₩3,640 on 08 December 2020. The South Korean market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Services industry, which is up 7.0% over the same period. Is New 90 Day High Low • Feb 09
New 90-day high: ₩3,955 The company is up 1.0% from its price of ₩3,910 on 11 November 2020. The South Korean market is up 24% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 4.0% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩70.00 Per Share Will be paid on the 26th of March to those who are registered shareholders by the 29th of December. The trailing yield of 4.6% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (3.2%). Is New 90 Day High Low • Nov 30
New 90-day low: ₩3,665 The company is down 7.0% from its price of ₩3,950 on 01 September 2020. The South Korean market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 2.0% over the same period. Is New 90 Day High Low • Oct 30
New 90-day low: ₩3,795 The company is down 5.0% from its price of ₩4,015 on 31 July 2020. The South Korean market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Services industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩11,233 per share.