New Risk • May 31
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% 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 Risks Interest payments are not well covered by earnings (1.2x net interest cover). Earnings have declined by 38% per year over the past 5 years. High level of non-cash earnings (21% accrual ratio). 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 (₩75.5b market cap, or US$50.1m). Announcement • Mar 07
The LEADCORP, Inc., Annual General Meeting, Mar 27, 2026 The LEADCORP, Inc., Annual General Meeting, Mar 27, 2026, at 08:30 Tokyo Standard Time. Location: conference room, 22, sejong-daero 21-gil, jung-gu, seoul South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 08 April 2026. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.4%). Declared Dividend • Nov 08
Dividend of ₩100.00 announced Dividend of ₩100.00 is the same as last year. Ex-date: 29th December 2025 Payment date: 8th April 2026 Dividend yield will be 2.7%, which is higher than the industry average of 2.2%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (7% cash payout ratio). The dividend has decreased over the past 66 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 84% to shift the payout ratio to a potentially unsustainable range, which is more than the 16% EPS decline seen over the last 5 years. Announcement • Nov 07
The LEADCORP, Inc. announces Annual dividend, payable on April 08, 2026 The LEADCORP, Inc. announced Annual dividend of KRW 100.0000 per share payable on April 08, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. New Risk • Jul 15
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 12% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 46% per year over the past 5 years. 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 (₩132.6b market cap, or US$95.9m). New Risk • May 15
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 9.1% 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 Interest payments are not well covered by earnings (1.5x net interest cover). Earnings have declined by 44% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (9.1% average weekly change). Market cap is less than US$100m (₩132.6b market cap, or US$95.1m). Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 32% After last week's 32% share price gain to ₩5,180, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 14x in the Consumer Finance industry in Asia. Total loss to shareholders of 29% over the past three years. Announcement • May 12
The LEADCORP, Inc. (KOSDAQ:A012700) agreed to acquire 47.30% stake in Mason Capital Corporation (KOSDAQ:A021880) from Cactus Buyout Fund VI managed by Cactus Private Equity Co., Ltd. for KRW 61.6 billion. The LEADCORP, Inc. (KOSDAQ:A012700) agreed to acquire 47.30% stake in Mason Capital Corporation (KOSDAQ:A021880) from Cactus Buyout Fund VI managed by Cactus Private Equity Co., Ltd. for KRW 61.6 billion on May 12, 2025. A cash consideration of KRW 61.62 billion will be paid by The LEADCORP, Inc. As part of consideration, KRW 61.62 billion is paid towards common equity of Mason Capital Corporation. The expected completion of the transaction is May 15, 2025. New Risk • Mar 30
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Earnings have declined by 44% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Market cap is less than US$100m (₩98.5b market cap, or US$67.0m). Announcement • Mar 08
The LEADCORP, Inc., Annual General Meeting, Mar 28, 2025 The LEADCORP, Inc., Annual General Meeting, Mar 28, 2025, at 08:30 Tokyo Standard Time. Location: conference room, 16, sejong-daero 19-gil, jung-gu, seoul South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 23 April 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 4.8%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (1.6%). 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 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 (₩118.6b market cap, or US$90.2m). Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: ₩164 (vs ₩106 loss in 2Q 2023) Second quarter 2024 results: EPS: ₩164 (up from ₩106 loss in 2Q 2023). Revenue: ₩107.7b (up 1.1% from 2Q 2023). Net income: ₩4.19b (up ₩6.90b from 2Q 2023). Profit margin: 3.9% (up from net loss in 2Q 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. New Risk • Apr 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩136.4b (US$99.7m) 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 Risk Earnings have declined by 18% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (248% payout ratio). Market cap is less than US$100m (₩136.4b market cap, or US$99.7m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩500 per share at 13% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 25 April 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 13%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.7%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩226 (vs ₩122 in 3Q 2022) Third quarter 2023 results: EPS: ₩226 (up from ₩122 in 3Q 2022). Revenue: ₩129.8b (down 19% from 3Q 2022). Net income: ₩5.78b (up 85% from 3Q 2022). Profit margin: 4.5% (up from 1.9% in 3Q 2022). The increase in margin was driven by lower expenses. 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 6% per year, which means it has not declined as severely as earnings. New Risk • Oct 23
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩134.4b (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 Risk Earnings have declined by 3.6% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (dividend per share is over 8x earnings per share). Profit margins are more than 30% lower than last year (0.5% net profit margin). Market cap is less than US$100m (₩134.4b market cap, or US$99.3m). New Risk • Aug 30
New major risk - Revenue and earnings growth Earnings have declined by 3.6% 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 3.6% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (dividend per share is over 8x earnings per share). Profit margins are more than 30% lower than last year (0.5% net profit margin). Upcoming Dividend • Jun 22
Upcoming dividend of ₩300 per share at 11% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 14 August 2023. Payout ratio is on the higher end at 93%, however this is supported by cash flows. Trailing yield: 11%. Within top quartile of South Korean dividend payers (3.2%). Higher than average of industry peers (1.8%). Upcoming Dividend • Dec 21
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 25 April 2023. Payout ratio is a comfortable 45% but the company is not cash flow positive. Trailing yield: 10.0%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (1.6%). 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. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Oct 26
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ₩7,400, the stock trades at a trailing P/E ratio of 4.4x. Average trailing P/E is 13x in the Consumer Finance industry in Asia. Total returns to shareholders of 73% over the past three years. Upcoming Dividend • Jun 22
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 11 August 2022. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 9.1%. Within top quartile of South Korean dividend payers (3.2%). Higher than average of industry peers (1.7%). 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. 4 experienced directors. No highly experienced directors. No independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩7,290, the stock trades at a trailing P/E ratio of 4.6x. Average trailing P/E is 16x in the Consumer Finance industry in Asia. Total returns to shareholders of 71% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 21 April 2022. Payout ratio is a comfortable 51% but the company is not cash flow positive. Trailing yield: 12%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.4%). Upcoming Dividend • Jun 22
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 11 August 2021. Trailing yield: 9.3%. Within top quartile of South Korean dividend payers (2.1%). Higher than average of industry peers (1.2%). Is New 90 Day High Low • Mar 12
New 90-day high: ₩7,250 The company is up 7.0% from its price of ₩6,790 on 11 December 2020. The South Korean market is also up 7.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Consumer Finance industry, which is down 3.0% over the same period. Is New 90 Day High Low • Jan 18
New 90-day low: ₩6,520 The company is down 5.0% from its price of ₩6,840 on 20 October 2020. The South Korean market is up 30% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Consumer Finance industry, which is up 8.0% over the same period.