New Risk • Apr 22
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: 10.0% 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: Major Risk Earnings have declined by 48% 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 (₩41.3b market cap, or US$27.9m). Upcoming Dividend • Apr 10
Upcoming dividend of ₩450 per share Eligible shareholders must have bought the stock before 17 April 2026. Payment date: 15 May 2026. The company last paid an ordinary dividend in August 2019. The average dividend yield among industry peers is 1.6%. Announcement • Mar 13
Newtree Co., Ltd., Annual General Meeting, Mar 30, 2026 Newtree Co., Ltd., Annual General Meeting, Mar 30, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 6-14, baekjegobun-ro 27-gil, songpa-gu, seoul South Korea Valuation Update With 7 Day Price Move • Jul 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩6,480, the stock trades at a trailing P/E ratio of 42.8x. Average trailing P/E is 19x in the Personal Products industry in South Korea. Total loss to shareholders of 47% over the past three years. New Risk • May 30
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 2,369% 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: Major Risk Earnings have declined by 31% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.2% net profit margin). Market cap is less than US$100m (₩47.5b market cap, or US$34.5m). Announcement • Mar 12
Newtree Co., Ltd., Annual General Meeting, Mar 28, 2025 Newtree Co., Ltd., Annual General Meeting, Mar 28, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 6-14, baekjegobun-ro 27-gil, songpa-gu, seoul South Korea Valuation Update With 7 Day Price Move • Nov 15
Investor sentiment deteriorates as stock falls 30% After last week's 30% share price decline to ₩6,480, the stock trades at a trailing P/E ratio of 4.1x. Average trailing P/E is 17x in the Personal Products industry in South Korea. Total loss to shareholders of 70% over the past three years. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩7,560, the stock trades at a trailing P/E ratio of 7.6x. Average trailing P/E is 24x in the Personal Products industry in South Korea. Total loss to shareholders of 75% over the past three years. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: ₩451 (vs ₩92.36 loss in 1Q 2023) First quarter 2024 results: EPS: ₩451 (up from ₩92.36 loss in 1Q 2023). Revenue: ₩36.7b (down 14% from 1Q 2023). Net income: ₩4.06b (up ₩4.89b from 1Q 2023). Profit margin: 11% (up from net loss in 1Q 2023). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 40 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩10,370, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 25x in the Personal Products industry in South Korea. Total loss to shareholders of 73% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩250 per share at 3.5% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 3.5%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.2%). Buying Opportunity • Jul 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 12%. The fair value is estimated to be ₩9,930, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.8% over the last 3 years. Meanwhile, the company became loss making. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improved over the past week After last week's 17% share price gain to ₩11,600, the stock trades at a trailing P/E ratio of 10.1x. Average trailing P/E is 21x in the Personal Products industry in South Korea. Total loss to shareholders of 11% over the past three years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩250 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 14 April 2023. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (1.3%). Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩8,650, the stock trades at a trailing P/E ratio of 6.7x. Average trailing P/E is 18x in the Personal Products industry in South Korea. Total loss to shareholders of 40% over the past three years. Price Target Changed • Apr 27
Price target decreased to ₩35,000 Down from ₩48,000, the current price target is provided by 1 analyst. New target price is 77% above last closing price of ₩19,800. Stock is down 43% over the past year. The company is forecast to post earnings per share of ₩2,901 for next year compared to ₩2,114 last year. Upcoming Dividend • Dec 22
Upcoming dividend of ₩250 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 15 April 2022. Payout ratio is a comfortable 10.0% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (0.8%). Announcement • Aug 24
Newtree Co.,Ltd. announced that it has received KRW 20 billion in funding from Kiwoom Securities Co., Ltd., Investment Arm On August 23, 2021, Newtree Co.,Ltd. closed the transaction. Announcement • Aug 20
Newtree Co.,Ltd. announced that it expects to receive KRW 20 billion in funding from Kiwoom Securities Co., Ltd., Investment Arm and another investor Newtree Co.,Ltd announced that it will issue series 2 bearer type, non-guaranteed, non-separable private placement bonds with warrants for gross proceeds of KRW 10,000,000,000 and series 2 unregistered nonguaranteed private convertible bonds for gross proceeds of KRW 10,000,000,000; for aggregate proceeds of KRW 20,000,000,000 on August 19, 2021. The bonds will be issued at par. The transaction will include participation from Kiwoom Securities Co., Ltd., Investment Arm for series 2 bonds and NH Investment & Securities Co., Ltd in the position of a trustee of the Profit Reach-Rich The Well-being Hedge Fund for series 1 bonds. The bonds will bear zero coupon and will mature on February 23, 2026. The bonds are fully convertible into 317,894 common shares at a fixed conversion price of KRW 31,457 per share from August 23, 2022 to January 23, 2026. The date of subscription and expected date of payment is August 23, 2021. The transaction is approved by the board of directors of the company. All securities issued will be subject to a hold period of one year. Is New 90 Day High Low • Feb 18
New 90-day high: ₩29,300 The company is up 29% from its price of ₩22,800 on 20 November 2020. The South Korean market is up 22% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Personal Products industry, which is up 12% over the same period. Is New 90 Day High Low • Jan 29
New 90-day high: ₩26,100 The company is up 22% from its price of ₩21,350 on 30 October 2020. The South Korean market is up 33% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Personal Products industry, which is up 18% over the same period. Is New 90 Day High Low • Jan 05
New 90-day high: ₩25,550 The company is up 19% from its price of ₩21,550 on 07 October 2020. The South Korean market is up 23% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Personal Products industry, which is up 9.0% over the same period. Is New 90 Day High Low • Dec 18
New 90-day high: ₩24,700 The company is up 9.0% from its price of ₩22,650 on 18 September 2020. The South Korean market is up 14% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Personal Products industry, which is also up 9.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day low: ₩19,450 The company is down 31% from its price of ₩28,300 on 26 June 2020. The South Korean market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Personal Products industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩94,845 per share.