New Risk • May 29
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 43% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 28% per year over the past 5 years. Minor Risks High level of debt (43% net debt to equity). Market cap is less than US$100m (₩96.5b market cap, or US$64.5m). Announcement • Mar 17
HC BoKwang Industry Co.,Ltd, Annual General Meeting, Mar 31, 2026 HC BoKwang Industry Co.,Ltd, Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 40, yutongdanji-ro 3-gil, buk-gu, daegu South Korea Announcement • Feb 27
HC BoKwang Industry Co.,Ltd announced that it has received KRW 7 billion in funding from Mirae Asset Securities Co., Ltd., DB Securities Co., Ltd., IM Securities Co., Ltd. On February 26, 2026, HC BoKwang Industry Co.,Ltd closed the transaction. Upcoming Dividend • Dec 22
Upcoming dividend of ₩150 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 there are not enough cash flows to support it either. Trailing yield: 10%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (4.6%). Declared Dividend • Nov 16
Dividend of ₩150 announced Shareholders will receive a dividend of ₩150. Ex-date: 29th December 2025 Payment date: 22nd April 2026 Dividend yield will be 5.2%, which is higher than the industry average of 4.3%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months. The dividend is also not adequately covered by cash flows (99% cash payout ratio). The dividend has increased by an average of 32% per year over the past 4 years and payments have been stable during that time. New Risk • Aug 28
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.6x 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 (0.6x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 99% Earnings have declined by 10% per year over the past 5 years. Minor Risk Market cap is less than US$100m (₩126.6b market cap, or US$91.3m). New Risk • Jun 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩137.4b (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: Major Risk Earnings have declined by 1.8% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (2.4% net profit margin). Market cap is less than US$100m (₩137.4b market cap, or US$99.6m). New Risk • Jun 02
New major risk - Revenue and earnings growth Earnings have declined by 1.8% 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 1.8% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.1% average weekly change). Profit margins are more than 30% lower than last year (2.4% net profit margin). Valuation Update With 7 Day Price Move • Apr 28
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩4,320, the stock trades at a trailing P/E ratio of 30x. Average trailing P/E is 9x in the Basic Materials industry in South Korea. Total loss to shareholders of 40% over the past three years. New Risk • Apr 18
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 Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 101% Cash payout ratio: 106% Minor Risks Share price has been volatile over the past 3 months (9.1% average weekly change). Profit margins are more than 30% lower than last year (8.2% net profit margin). Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩4,945, the stock trades at a trailing P/E ratio of 34.3x. Average trailing P/E is 9x in the Basic Materials industry in South Korea. Total loss to shareholders of 24% over the past three years. New Risk • Mar 22
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 8.2% Last year net profit margin: 19% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 101% Cash payout ratio: 106% Minor Risk Profit margins are more than 30% lower than last year (8.2% net profit margin). Announcement • Mar 13
Bokwang Industry Co., Ltd., Annual General Meeting, Mar 26, 2025 Bokwang Industry Co., Ltd., Annual General Meeting, Mar 26, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 40, yutongdanji-ro 3-gil, buk-gu, daegu South Korea Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩5,500, the stock trades at a trailing P/E ratio of 18.5x. Average trailing P/E is 8x in the Basic Materials industry in South Korea. Total loss to shareholders of 4.5% over the past three years. New Risk • Dec 23
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 9.3% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 101% Dividend per share is over 65x cash flows per share. Minor Risk Share price has been volatile over the past 3 months (9.3% average weekly change). Upcoming Dividend • Dec 20
Upcoming dividend of ₩150 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 17 April 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 6.5%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (4.3%). Valuation Update With 7 Day Price Move • Dec 11
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩4,340, the stock trades at a trailing P/E ratio of 14.6x. Average trailing P/E is 7x in the Basic Materials industry in South Korea. Total loss to shareholders of 27% over the past three years. Buy Or Sell Opportunity • Nov 19
Now 23% overvalued Over the last 90 days, the stock has fallen 21% to ₩3,745. The fair value is estimated to be ₩3,052, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.3% over the last 3 years. Earnings per share has grown by 14%. New Risk • Nov 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩139.2b (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: Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩139.2b market cap, or US$99.7m). Upcoming Dividend • Sep 20
Upcoming dividend of ₩150 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 18 October 2024. Payout ratio is a comfortable 75% but the company is not cash flow positive. Trailing yield: 6.6%. Within top quartile of South Korean dividend payers (3.8%). Higher than average of industry peers (4.4%). Reported Earnings • Mar 26
Full year 2023 earnings released: EPS: ₩459 (vs ₩332 in FY 2022) Full year 2023 results: EPS: ₩459 (up from ₩332 in FY 2022). Revenue: ₩85.5b (down 2.3% from FY 2022). Net income: ₩16.7b (up 38% from FY 2022). Profit margin: 20% (up from 14% 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 20% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Feb 27
Bokwang Industry 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., JB Woori Capital Co., Ltd, KB Securities Co., Ltd. On February 27, 2024, Bokwang Industry Co., Ltd. closed the transaction. Announcement • Feb 24
Bokwang Industry 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., JB Woori Capital Co., Ltd, KB Securities Co., Ltd. Bokwang Industry 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., JB Woori Capital Co., Ltd and KB Securities Co., Ltd. The bonds will be 100% convertible into 3,758,691 shares at a conversion price of KRW 5,321 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 • Nov 19
Third quarter 2023 earnings released: EPS: ₩86.00 (vs ₩56.00 in 3Q 2022) Third quarter 2023 results: EPS: ₩86.00 (up from ₩56.00 in 3Q 2022). Revenue: ₩19.2b (down 14% from 3Q 2022). Net income: ₩3.11b (up 52% from 3Q 2022). Profit margin: 16% (up from 9.2% in 3Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • May 20
First quarter 2023 earnings released: EPS: ₩129 (vs ₩72.00 in 1Q 2022) First quarter 2023 results: EPS: ₩129 (up from ₩72.00 in 1Q 2022). Revenue: ₩21.4b (up 14% from 1Q 2022). Net income: ₩4.68b (up 80% from 1Q 2022). Profit margin: 22% (up from 14% in 1Q 2022). The increase in margin was driven by higher revenue. Upcoming Dividend • Dec 21
Upcoming dividend of ₩150 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. Payout ratio is a comfortable 50% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (1.7%). 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. 6 experienced directors. No highly experienced directors. 2 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: 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 20% share price gain to ₩6,630, the stock trades at a trailing P/E ratio of 21.8x. Average trailing P/E is 14x in the Basic Materials industry in South Korea. Total returns to shareholders of 66% over the past three years. Buying Opportunity • Jun 20
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be ₩6,908, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 30% over the last year. Earnings per share has grown by 15%. 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. 6 experienced directors. No highly experienced directors. 2 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: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩150 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 14 April 2022. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 2.4%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.7%). Valuation Update With 7 Day Price Move • Oct 25
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩8,550, the stock trades at a trailing P/E ratio of 29.2x. Average trailing P/E is 19x in the Basic Materials industry in South Korea. Total returns to shareholders of 170% 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 27% share price decline to ₩9,010, the stock trades at a trailing P/E ratio of 30.8x. Average trailing P/E is 18x in the Basic Materials industry in South Korea. Total returns to shareholders of 107% over the past three years. Valuation Update With 7 Day Price Move • Sep 10
Investor sentiment improved over the past week After last week's 42% share price gain to ₩11,000, the stock trades at a trailing P/E ratio of 37.5x. Average trailing P/E is 22x in the Basic Materials industry in South Korea. Total returns to shareholders of 109% 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 20% share price gain to ₩7,410, the stock trades at a trailing P/E ratio of 28x. Average trailing P/E is 23x in the Basic Materials industry in South Korea. Total returns to shareholders of 49% over the past three years. Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment improved over the past week After last week's 34% share price gain to ₩6,950, the stock trades at a trailing P/E ratio of 40.3x. Average trailing P/E is 31x in the Basic Materials industry in South Korea. Total returns to shareholders of 26% over the past three years. Is New 90 Day High Low • Mar 08
New 90-day low: ₩5,170 The company is down 8.0% from its price of ₩5,650 on 08 December 2020. The South Korean market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 32% over the same period. Is New 90 Day High Low • Jan 14
New 90-day low: ₩5,320 The company is down 26% from its price of ₩7,210 on 16 October 2020. The South Korean market is up 31% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 31% over the same period. Is New 90 Day High Low • Dec 28
New 90-day low: ₩5,460 The company is down 25% from its price of ₩7,320 on 29 September 2020. The South Korean market is up 20% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Basic Materials industry, which is up 19% over the same period. Is New 90 Day High Low • Sep 25
New 90-day high: ₩7,290 The company is up 48% from its price of ₩4,935 on 26 June 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 Basic Materials industry, which is up 3.0% over the same period.