Board Change • Apr 30
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. 2 experienced directors. 1 highly experienced director. No independent directors (3 non-independent directors). CEO & Representative Director Byeong-Jun Park was the last director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. New Risk • Apr 01
New major risk - Revenue and earnings growth Earnings have declined by 13% 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 Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 13% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩102.1b market cap, or US$67.7m). Announcement • Mar 17
Home Center Holdings Co.,Ltd, Annual General Meeting, Mar 31, 2026 Home Center Holdings Co.,Ltd, Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 139-6, nowon-ro, buk-gu, daegu South Korea Buy Or Sell Opportunity • Mar 05
Now 27% overvalued Over the last 90 days, the stock has fallen 3.6% to ₩694. The fair value is estimated to be ₩545, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 11% over the last 3 years. Meanwhile, the company became loss making. Upcoming Dividend • Dec 22
Upcoming dividend of ₩30.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 22 April 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 4.1%. Within top quartile of South Korean dividend payers (3.6%). Lower than average of industry peers (4.6%). Declared Dividend • Nov 17
Dividend of ₩30.00 announced Dividend of ₩30.00 is the same as last year. Ex-date: 29th December 2025 Payment date: 22nd April 2026 Dividend yield will be 4.3%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (173% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 44% per year over the past 3 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 92% to bring the payout ratio under control, which is more than the 7.7% EPS growth achieved over the last 5 years. New Risk • Aug 27
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 172% The company is paying a dividend despite having no free cash flows. Dividend yield: 4.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain 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 Risks Debt is not well covered by operating cash flow (2.0% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 172% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Market cap is less than US$100m (₩96.0b market cap, or US$68.8m). New Risk • May 23
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 43% 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 Interest payments are not well covered by earnings (0.3x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.4% net profit margin). Market cap is less than US$100m (₩103.7b market cap, or US$75.5m). Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩803, the stock trades at a trailing P/E ratio of 21.4x. Average trailing P/E is 10x in the Basic Materials industry in South Korea. Total loss to shareholders of 51% over the past three years. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩961, the stock trades at a trailing P/E ratio of 25.7x. Average trailing P/E is 9x in the Basic Materials industry in South Korea. Total loss to shareholders of 25% over the past three years. Reported Earnings • Mar 22
Full year 2024 earnings released: EPS: ₩37.00 (vs ₩181 in FY 2023) Full year 2024 results: EPS: ₩37.00 (down from ₩181 in FY 2023). Revenue: ₩369.0b (down 14% from FY 2023). Net income: ₩4.75b (down 79% from FY 2023). Profit margin: 1.3% (down from 5.4% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Announcement • Mar 13
Home Center Holdings Co.,Ltd, Annual General Meeting, Mar 26, 2025 Home Center Holdings Co.,Ltd, Annual General Meeting, Mar 26, 2025, at 09:01 Tokyo Standard Time. Location: conference room, 40, yutongdanji-ro 3-gil, buk-gu, daegu South Korea New Risk • Jan 20
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 Risk Debt is not well covered by operating cash flow (0.2% operating cash flow to total debt). 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). Profit margins are more than 30% lower than last year (3.3% net profit margin). Market cap is less than US$100m (₩136.5b market cap, or US$94.0m). Board Change • Jan 20
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. 2 independent directors (8 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: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 20
Upcoming dividend of ₩30.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 17 April 2025. Payout ratio is a comfortable 19% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of South Korean dividend payers (3.9%). Lower than average of industry peers (4.3%). Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩869, the stock trades at a trailing P/E ratio of 8.4x. Average trailing P/E is 8x in the Basic Materials industry in South Korea. Total loss to shareholders of 26% over the past three years. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩812, the stock trades at a trailing P/E ratio of 5.7x. Average trailing P/E is 9x in the Basic Materials industry in South Korea. Total loss to shareholders of 60% over the past three years. Buy Or Sell Opportunity • Oct 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 25% to ₩812. The fair value is estimated to be ₩1,035, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 33%. Upcoming Dividend • Sep 20
Upcoming dividend of ₩10.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 18 October 2024. Payout ratio is a comfortable 7.1% but the company is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of South Korean dividend payers (3.8%). Lower than average of industry peers (4.4%). Announcement • Sep 12
Home Center Holdings Co.,Ltd (KOSDAQ:A060560) agreed to acquire 90% stake in Dong Hwa Housing Co. Ltd from a group of shareholders for KRW 46.7 billion. Home Center Holdings Co.,Ltd (KOSDAQ:A060560) agreed to acquire 90% stake in Dong Hwa Housing Co. Ltd from a group of shareholders for KRW 46.7 billion on September 11, 2024. A cash consideration of KRW 46.65 billion will be paid by Home Center Holdings Co.,Ltd. As part of consideration, KRW 46.65 billion is paid towards common equity of Dong Hwa Housing Co. Ltd.
The expected completion of the transaction is January 31, 2025. New Risk • May 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩137.0b (US$99.6m) 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: Minor Risks High level of debt (41% net debt to equity). Market cap is less than US$100m (₩137.0b market cap, or US$99.6m). Reported Earnings • Mar 26
Full year 2023 earnings released: EPS: ₩181 (vs ₩106 in FY 2022) Full year 2023 results: EPS: ₩181 (up from ₩106 in FY 2022). Revenue: ₩427.5b (down 1.1% from FY 2022). Net income: ₩22.9b (up 70% from FY 2022). Profit margin: 5.4% (up from 3.1% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Feb 27
Home Center Holdings Co.,Ltd announced that it has received KRW 20 billion in funding from Mirae Asset Securities Co., Ltd., Samsung Securities Co., Ltd., NH Investment & Securities Co., Ltd., Hana Bank Co., Ltd., KB Securities Co., Ltd., JB Woori Capital Co., Ltd On February 27, 2024, Home Center Holdings Co.,Ltd closed the transaction. Announcement • Feb 24
Home Center Holdings Co.,Ltd announced that it expects to receive KRW 20 billion in funding from Mirae Asset Securities Co., Ltd., Samsung Securities Co., Ltd., NH Investment & Securities Co., Ltd., Hana Bank Co., Ltd., KB Securities Co., Ltd., JB Woori Capital Co., Ltd Home Center Holdings Co.,Ltd announced a private placement to issue Series 4 Bearer Unsecured Private Placement Convertible Bonds for the gross proceeds of KRW 20,000,000,000 on February 23. 2024. The transaction will include participation from new investors such as Mirae Asset Securities Co., Ltd., Samsung Securities Co., Ltd., NH Investment & Securities Co., Ltd., Hana Bank Co., Ltd. , JB Woori Capital Co., Ltd and KB Securities Co., Ltd. The bonds will be 100% convertible into 16,906,170 shares at a conversion price of KRW 1,183 in a period starting from February 27, 2025 and ending on January 27, 2029. The bonds will mature on February 27, 2029. The transaction is expected to close on February 27, 2024. The transaction has been approved by the board of directors of the company. Reported Earnings • Mar 23
Full year 2022 earnings released: EPS: ₩106 (vs ₩83.00 in FY 2021) Full year 2022 results: EPS: ₩106 (up from ₩83.00 in FY 2021). Revenue: ₩432.1b (up 33% from FY 2021). Net income: ₩13.5b (up 36% from FY 2021). Profit margin: 3.1% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. 2 independent directors (8 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: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Jul 07
Investor sentiment improved over the past week After last week's 15% share price gain to ₩1,295, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 14x in the Basic Materials industry in South Korea. Total returns to shareholders of 15% over the past three years. 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 ₩1,210, the stock trades at a trailing P/E ratio of 13.9x. Average trailing P/E is 17x in the Basic Materials industry in South Korea. Negligible returns to shareholders over past three years. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improved over the past week After last week's 21% share price gain to ₩1,750, the stock trades at a trailing P/E ratio of 22.4x. Average trailing P/E is 18x in the Basic Materials industry in South Korea. Total returns to shareholders of 38% over the past three years. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. No highly experienced directors. 2 independent directors (8 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: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩1,890, the stock trades at a trailing P/E ratio of 60.6x. Average trailing P/E is 19x in the Basic Materials industry in South Korea. Total returns to shareholders of 56% over the past three years. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment deteriorated over the past week After last week's 21% share price decline to ₩1,700, the stock trades at a trailing P/E ratio of 54.5x. Average trailing P/E is 18x in the Basic Materials industry in South Korea. Total returns to shareholders of 23% over the past three years. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improved over the past week After last week's 31% share price gain to ₩2,425, the stock trades at a trailing P/E ratio of 59.9x. Average trailing P/E is 22x in the Basic Materials industry in South Korea. Total returns to shareholders of 46% over the past three years. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment improved over the past week After last week's 20% share price gain to ₩1,525, the stock trades at a trailing P/E ratio of 32.8x. Average trailing P/E is 25x in the Basic Materials industry in South Korea. Total loss to shareholders of 3.3% over the past three years. Is New 90 Day High Low • Feb 24
New 90-day low: ₩930 The company is down 26% from its price of ₩1,250 on 26 November 2020. The South Korean market is up 17% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 66% over the same period. Is New 90 Day High Low • Feb 08
New 90-day low: ₩951 The company is down 26% from its price of ₩1,280 on 10 November 2020. The South Korean market is up 25% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 45% over the same period. Is New 90 Day High Low • Jan 18
New 90-day low: ₩1,010 The company is down 24% from its price of ₩1,330 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 Basic Materials industry, which is up 34% over the same period. Is New 90 Day High Low • Nov 30
New 90-day low: ₩1,220 The company is down 5.0% from its price of ₩1,285 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 Basic Materials industry, which is up 3.0% over the same period. Is New 90 Day High Low • Oct 27
New 90-day low: ₩1,235 The company is down 2.0% from its price of ₩1,260 on 29 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 Basic Materials industry, which is up 1.0% over the same period. 
