Reported Earnings • Nov 15
Third quarter 2023 earnings released: EPS: ₩117 (vs ₩358 loss in 3Q 2022) Third quarter 2023 results: EPS: ₩117 (up from ₩358 loss in 3Q 2022). Revenue: ₩60.8b (up 13% from 3Q 2022). Net income: ₩1.46b (up ₩5.89b from 3Q 2022). Profit margin: 2.4% (up from net loss in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. New Risk • Aug 20
New major risk - Revenue and earnings growth Earnings have declined by 5.3% 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 5.3% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • May 16
First quarter 2023 earnings released: ₩65.00 loss per share (vs ₩221 profit in 1Q 2022) First quarter 2023 results: ₩65.00 loss per share (down from ₩221 profit in 1Q 2022). Revenue: ₩50.5b (down 25% from 1Q 2022). Net loss: ₩811.9m (down 130% from profit in 1Q 2022). Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 22
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: ₩30.00 (down from ₩2,128 in FY 2021). Revenue: ₩234.7b (down 18% from FY 2021). Net income: ₩370.9m (down 99% from FY 2021). Profit margin: 0.2% (down from 9.2% in FY 2021). Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 98%. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩18,180, the stock trades at a trailing P/E ratio of 32x. Average trailing P/E is 16x in the Packaging industry in South Korea. Total returns to shareholders of 21% over the past three years. Buying Opportunity • Mar 08
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be ₩21,841, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 7.2%. Revenue is forecast to grow by 25% in 2 years. Earnings is forecast to grow by 242% in the next 2 years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩190 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 11 April 2023. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (1.5%). Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improved over the past week After last week's 24% share price gain to ₩16,500, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 13x in the Packaging industry in Asia. Total loss to shareholders of 25% over the past three years. Price Target Changed • Nov 17
Price target decreased to ₩28,000 Down from ₩31,500, the current price target is an average from 3 analysts. New target price is 100% above last closing price of ₩14,000. The company is forecast to post earnings per share of ₩1,556 for next year compared to ₩2,128 last year. Reported Earnings • Nov 16
Third quarter 2022 earnings released: ₩358 loss per share (vs ₩532 profit in 3Q 2021) Third quarter 2022 results: ₩358 loss per share (down from ₩532 profit in 3Q 2021). Revenue: ₩54.0b (down 21% from 3Q 2021). Net loss: ₩4.43b (down 167% from profit in 3Q 2021). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩12,400, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Packaging industry in Asia. Total loss to shareholders of 46% over the past three years. Valuation Update With 7 Day Price Move • Sep 28
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩14,150, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Packaging industry in Asia. Total loss to shareholders of 37% over the past three years. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 18% share price gain to ₩18,400, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Packaging industry in Asia. Total loss to shareholders of 22% over the past three years. Major Estimate Revision • May 27
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from ₩297.0m to ₩292.5m. EPS estimate also fell from ₩2,057 per share to ₩1,810 per share. Net income forecast to shrink 16% next year vs 22% growth forecast for Packaging industry in South Korea . Consensus price target down from ₩31,500 to ₩30,750. Share price fell 3.5% to ₩20,600 over the past week. Buying Opportunity • May 04
Now 21% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be ₩29,758, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 28%. For the next 3 years, revenue is forecast to grow by 7.6% per annum. Earnings is also forecast to grow by 4.4% per annum over the same time period. Price Target Changed • Apr 27
Price target decreased to ₩31,500 Down from ₩34,800, the current price target is an average from 4 analysts. New target price is 29% above last closing price of ₩24,450. Stock is down 17% over the past year. The company is forecast to post earnings per share of ₩2,061 for next year compared to ₩2,128 last year. Buying Opportunity • Mar 07
Now 21% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be ₩28,449, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 27% per annum over the last 3 years. Price Target Changed • Feb 04
Price target decreased to ₩31,500 Down from ₩34,800, the current price target is an average from 5 analysts. New target price is 54% above last closing price of ₩20,450. Stock is down 19% over the past year. The company is forecast to post earnings per share of ₩2,023 for next year compared to ₩917 last year. Upcoming Dividend • Dec 22
Upcoming dividend of ₩190 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 11 April 2022. Payout ratio is a comfortable 9.9% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (1.5%). Price Target Changed • Feb 18
Price target raised to ₩28,800 Up from ₩24,600, the current price target is an average from 4 analysts. The new target price is close to the current share price of ₩28,000. As of last close, the stock is up 24% over the past year. Is New 90 Day High Low • Feb 10
New 90-day high: ₩26,850 The company is up 41% from its price of ₩19,100 on 12 November 2020. The South Korean market is up 23% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Packaging industry, which is up 32% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩21,968 per share. Price Target Changed • Jan 26
Price target raised to ₩24,600 Up from ₩22,600, the current price target is an average from 5 analysts. The new target price is close to the current share price of ₩25,700. As of last close, the stock is up 22% over the past year. Major Estimate Revision • Jan 26
Analysts lower EPS estimates to ₩878 The 2020 consensus revenue estimate was lowered from ₩258.7m to ₩251.8m. Earning per share (EPS) estimate was also lowered from ₩1,002 to ₩878 for the same period. Net income is expected to grow by 57% next year compared to 22% growth forecast for the Packaging industry in South Korea. The consensus price target increased from ₩22,600 to ₩24,600. Share price is up 11% to ₩25,700 over the past week. Is New 90 Day High Low • Jan 07
New 90-day high: ₩20,500 The company is up 4.0% from its price of ₩19,800 on 08 October 2020. The South Korean market is up 23% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Packaging industry, which is up 23% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩21,476 per share. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩160 Per Share Will be paid on the 13th of April to those who are registered shareholders by the 29th of December. The trailing yield of 0.8% is below the top quartile of South Korean dividend payers (2.6%), and is lower than industry peers (2.1%). Announcement • Sep 21
Yonwoo Co., Ltd(KOSDAQ:A115960) dropped from S&P Global BMI Index Yonwoo Co., Ltd(KOSDAQ:A115960) dropped from S&P Global BMI Index