Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩2,900, the stock trades at a trailing P/E ratio of 44.7x. Average trailing P/E is 15x in the Metals and Mining industry in South Korea. Total loss to shareholders of 26% over the past three years. New Risk • Apr 25
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 15% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Share price has been highly volatile over the past 3 months (17% average weekly change). Earnings have declined by 20% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (15% increase in shares outstanding). Market cap is less than US$100m (₩122.1b market cap, or US$85.2m). Announcement • Feb 22
Hankuk Steel Wire Co., Ltd., Annual General Meeting, Mar 28, 2025 Hankuk Steel Wire Co., Ltd., Annual General Meeting, Mar 28, 2025, at 11:00 Tokyo Standard Time. Location: conference room, 27, hasinbeonyeong-ro, saha-gu, busan South Korea New Risk • Dec 20
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.6x net interest cover). Earnings have declined by 16% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.3% average weekly change). Shareholders have been diluted in the past year (2.8% increase in shares outstanding). Market cap is less than US$100m (₩96.6b market cap, or US$66.5m). New Risk • Dec 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 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 Risks Interest payments are not well covered by earnings (0.6x net interest cover). Earnings have declined by 16% 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 (₩96.6b market cap, or US$66.7m). Announcement • Nov 20
Hankuk Steel Wire Co., Ltd. (KOSDAQ:A025550) agreed to acquire Gum Je Co., Ltd for KRW 6.14 billion. Hankuk Steel Wire Co., Ltd. (KOSDAQ:A025550) agreed to acquire Gum Je Co., Ltd for KRW 6.14 billion on November 18, 2024. Under the terms of the agreement Hankuk Steel Wire Co., Ltd. will issue 77.15 share per Gum Je Co., Ltd share. merger agreement is scheduled to be signed on November 20, 2024. The transaction is expected to close on January 27, 2025. New Risk • Aug 26
New major risk - Revenue and earnings growth Earnings have declined by 8.6% 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 Risks Interest payments are not well covered by earnings (0.5x net interest cover). Earnings have declined by 8.6% 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 (₩67.1b market cap, or US$50.7m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩100.00 per share at 2.6% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 05 April 2024. Payout ratio is a comfortable 43% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of South Korean dividend payers (3.5%). In line with average of industry peers (2.7%). Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improved over the past week After last week's 34% share price gain to ₩5,260, the stock trades at a trailing P/E ratio of 7.3x. Average trailing P/E is 6x in the Metals and Mining industry in South Korea. Total returns to shareholders of 75% over the past three years. Announcement • Aug 05
Hankuk Steel Wire Co., Ltd. (KOSDAQ:A025550) announces an Equity Buyback for KRW 2,000 million worth of its shares. Hankuk Steel Wire Co., Ltd. (KOSDAQ:A025550) announces a share repurchase program. Under the program, the company will repurchase up to KRW 2,000 million worth of own shares pursuant to a contract with Samsung Securities Co. Ltd. The purpose behind the program is to improve shareholder value and to stabilize stock price. The repurchase program will expire on August 3, 2023. As of August 3, 2022, the company had 1,244,459 treasury shares within scope available for dividend and 13,455 shares in treasury through other repurchase. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩4,465, the stock trades at a trailing P/E ratio of 5x. Average trailing P/E is 6x in the Metals and Mining industry in South Korea. Total returns to shareholders of 62% over the past three years. Valuation Update With 7 Day Price Move • Mar 17
Investor sentiment improved over the past week After last week's 16% share price gain to ₩7,020, the stock trades at a trailing P/E ratio of 13.9x. Average trailing P/E is 8x in the Metals and Mining industry in South Korea. Total returns to shareholders of 148% over the past three years. Reported Earnings • Mar 16
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: ₩506 (up from ₩78.00 in FY 2020). Revenue: ₩214.2b (up 14% from FY 2020). Net income: ₩11.5b (up ₩9.68b from FY 2020). Profit margin: 5.4% (up from 1.0% in FY 2020). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 35% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improved over the past week After last week's 29% share price gain to ₩5,910, the stock trades at a trailing P/E ratio of 11.3x. Average trailing P/E is 8x in the Metals and Mining industry in South Korea. Total returns to shareholders of 109% over the past three years. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improved over the past week After last week's 16% share price gain to ₩5,280, the stock trades at a trailing P/E ratio of 10.1x. Average trailing P/E is 7x in the Metals and Mining industry in South Korea. Total returns to shareholders of 92% over the past three years. Valuation Update With 7 Day Price Move • Oct 29
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩7,670, the stock trades at a trailing P/E ratio of 21.7x. Average trailing P/E is 11x in the Metals and Mining industry in South Korea. Total returns to shareholders of 207% over the past three years. Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment improved over the past week After last week's 23% share price gain to ₩9,800, the stock trades at a trailing P/E ratio of 27.7x. Average trailing P/E is 10x in the Metals and Mining industry in South Korea. Total returns to shareholders of 243% over the past three years. Valuation Update With 7 Day Price Move • Sep 23
Investor sentiment deteriorated over the past week After last week's 19% share price decline to ₩11,200, the stock trades at a trailing P/E ratio of 31.7x. Average trailing P/E is 12x in the Metals and Mining industry in South Korea. Total returns to shareholders of 298% over the past three years. Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improved over the past week After last week's 43% share price gain to ₩8,610, the stock trades at a trailing P/E ratio of 44.8x. Average trailing P/E is 12x in the Metals and Mining industry in South Korea. Total returns to shareholders of 207% over the past three years. Valuation Update With 7 Day Price Move • Aug 13
Investor sentiment improved over the past week After last week's 15% share price gain to ₩7,030, the stock trades at a trailing P/E ratio of 36.6x. Average trailing P/E is 17x in the Metals and Mining industry in South Korea. Total returns to shareholders of 149% over the past three years. Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩6,050, the stock trades at a trailing P/E ratio of 31.5x. Average trailing P/E is 16x in the Metals and Mining industry in South Korea. Total returns to shareholders of 118% over the past three years. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improved over the past week After last week's 19% share price gain to ₩6,120, the stock trades at a trailing P/E ratio of 31.8x. Average trailing P/E is 18x in the Metals and Mining industry in South Korea. Total returns to shareholders of 75% over the past three years. Valuation Update With 7 Day Price Move • May 22
Investor sentiment improved over the past week After last week's 21% share price gain to ₩5,710, the stock trades at a trailing P/E ratio of 73x. Average trailing P/E is 27x in the Metals and Mining industry in South Korea. Total returns to shareholders of 89% over the past three years. Valuation Update With 7 Day Price Move • May 05
Investor sentiment improved over the past week After last week's 31% share price gain to ₩4,890, the stock trades at a trailing P/E ratio of 62.5x. Average trailing P/E is 29x in the Metals and Mining industry in South Korea. Total returns to shareholders of 34% over the past three years. Reported Earnings • Mar 20
Full year 2020 earnings released: EPS ₩78.00 (vs ₩111 in FY 2019) The company reported a poor full year result with weaker earnings and profit margins, although revenues were flat. Full year 2020 results: Revenue: ₩187.2b (flat on FY 2019). Net income: ₩1.79b (down 31% from FY 2019). Profit margin: 1.0% (down from 1.4% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Mar 05
New 90-day low: ₩3,125 The company is down 3.0% from its price of ₩3,230 on 04 December 2020. The South Korean market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 13% over the same period. Announcement • Feb 19
Hankuk Steel Wire Co., Ltd., Annual General Meeting, Mar 26, 2021 Hankuk Steel Wire Co., Ltd., Annual General Meeting, Mar 26, 2021, at 10:00 Korea Standard Time. Is New 90 Day High Low • Jan 20
New 90-day high: ₩3,735 The company is up 20% from its price of ₩3,120 on 22 October 2020. The South Korean market is up 28% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Metals and Mining industry, which is up 26% over the same period. Is New 90 Day High Low • Nov 18
New 90-day high: ₩3,685 The company is up 34% from its price of ₩2,750 on 20 August 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 9.0% over the same period. Is New 90 Day High Low • Oct 06
New 90-day high: ₩3,280 The company is up 12% from its price of ₩2,920 on 08 July 2020. The South Korean market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Metals and Mining industry, which is up 9.0% over the same period. 