Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩2,565, the stock trades at a trailing P/E ratio of 28.6x. Average trailing P/E is 14x in the Chemicals industry in South Korea. Total returns to shareholders of 15% over the past three years. New Risk • May 24
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 17% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (17% operating cash flow to total debt). Share price has been highly volatile over the past 3 months (20% average weekly change). Minor Risks Profit margins are more than 30% lower than last year (3.4% net profit margin). Market cap is less than US$100m (₩67.5b market cap, or US$44.4m). Valuation Update With 7 Day Price Move • May 18
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩2,360, the stock trades at a trailing P/E ratio of 24.5x. Average trailing P/E is 15x in the Chemicals industry in South Korea. Total returns to shareholders of 14% over the past three years. New Risk • May 12
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 14% 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: Minor Risks High level of debt (52% net debt to equity). Share price has been volatile over the past 3 months (14% average weekly change). Profit margins are more than 30% lower than last year (3.7% net profit margin). Market cap is less than US$100m (₩52.6b market cap, or US$35.3m). Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩2,065, the stock trades at a trailing P/E ratio of 21.4x. Average trailing P/E is 16x in the Chemicals industry in South Korea. Total loss to shareholders of 5.1% over the past three years. New Risk • Mar 25
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: 3.7% Last year net profit margin: 5.6% 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 Share price has been highly volatile over the past 3 months (19% average weekly change). Minor Risks High level of debt (52% net debt to equity). Profit margins are more than 30% lower than last year (3.7% net profit margin). Market cap is less than US$100m (₩34.6b market cap, or US$23.1m). Announcement • Mar 10
Sungmoon Electronics Co., Ltd., Annual General Meeting, Mar 26, 2026 Sungmoon Electronics Co., Ltd., Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: auditorium, 61, segyosandan-ro, gyeonggi-do, pyeongtaek South Korea Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 27% After last week's 27% share price decline to ₩1,505, the stock trades at a trailing P/E ratio of 10.4x. Average trailing P/E is 13x in the Chemicals industry in South Korea. Total loss to shareholders of 11% over the past three years. Announcement • Feb 21
Sungmoon Electronics Co., Ltd. announces Annual dividend Sungmoon Electronics Co., Ltd. announced Annual dividend of KRW 5.0000 per share, ex-date on December 29, 2025 and record date on December 31, 2025. Buy Or Sell Opportunity • Jan 21
Now 24% undervalued Over the last 90 days, the stock has risen 92% to ₩2,280. The fair value is estimated to be ₩3,004, 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 16%. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₩2,500, the stock trades at a trailing P/E ratio of 17.2x. Average trailing P/E is 12x in the Chemicals industry in South Korea. Total returns to shareholders of 43% over the past three years. Valuation Update With 7 Day Price Move • Dec 30
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to ₩1,518, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 11x in the Chemicals industry in South Korea. Total loss to shareholders of 1.7% over the past three years. Reported Earnings • Nov 19
Third quarter 2025 earnings released: EPS: ₩33.00 (vs ₩21.00 loss in 3Q 2024) Third quarter 2025 results: EPS: ₩33.00 (up from ₩21.00 loss in 3Q 2024). Revenue: ₩11.5b (down 17% from 3Q 2024). Net income: ₩686.2m (up ₩1.12b from 3Q 2024). Profit margin: 6.0% (up from net loss in 3Q 2024). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 19
Second quarter 2025 earnings released: EPS: ₩4.00 (vs ₩56.00 in 2Q 2024) Second quarter 2025 results: EPS: ₩4.00 (down from ₩56.00 in 2Q 2024). Revenue: ₩14.6b (up 7.1% from 2Q 2024). Net income: ₩84.8m (down 93% from 2Q 2024). Profit margin: 0.6% (down from 8.5% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 20
First quarter 2025 earnings released: EPS: ₩40.00 (vs ₩19.00 in 1Q 2024) First quarter 2025 results: EPS: ₩40.00 (up from ₩19.00 in 1Q 2024). Revenue: ₩13.5b (up 18% from 1Q 2024). Net income: ₩864.1m (up 42% from 1Q 2024). Profit margin: 6.4% (up from 5.3% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year whereas the company’s share price has fallen by 20% per year. Reported Earnings • Mar 26
Full year 2024 earnings released: EPS: ₩127 (vs ₩83.00 loss in FY 2023) Full year 2024 results: EPS: ₩127 (up from ₩83.00 loss in FY 2023). Revenue: ₩48.1b (up 6.7% from FY 2023). Net income: ₩2.71b (up ₩4.36b from FY 2023). Profit margin: 5.6% (up from net loss in FY 2023). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. Announcement • Mar 13
Sungmoon Electronics Co., Ltd., Annual General Meeting, Mar 28, 2025 Sungmoon Electronics Co., Ltd., Annual General Meeting, Mar 28, 2025, at 10:00 Tokyo Standard Time. Location: auditorium, 61, segyosandan-ro, gyeonggi-do, pyeongtaek South Korea New Risk • Dec 09
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Market cap is less than US$100m (₩21.5b market cap, or US$15.1m). New Risk • Sep 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.9% 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 (2.3x net interest cover). High level of non-cash earnings (25% accrual ratio). Minor Risks Shareholders have been diluted in the past year (2.9% increase in shares outstanding). Market cap is less than US$100m (₩26.7b market cap, or US$20.3m). Reported Earnings • Mar 20
Full year 2023 earnings released: ₩83.00 loss per share (vs ₩112 profit in FY 2022) Full year 2023 results: ₩83.00 loss per share (down from ₩112 profit in FY 2022). Revenue: ₩45.1b (down 9.8% from FY 2022). Net loss: ₩1.65b (down 181% from profit in FY 2022). Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩5.00 per share at 0.3% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 11 April 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 0.3%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (1.8%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩6.00 (vs ₩60.00 in 3Q 2022) Third quarter 2023 results: EPS: ₩6.00 (down from ₩60.00 in 3Q 2022). Revenue: ₩8.49b (down 26% from 3Q 2022). Net income: ₩112.7m (down 91% from 3Q 2022). Profit margin: 1.3% (down from 11% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Buying Opportunity • May 27
Now 25% undervalued Over the last 90 days, the stock is up 30%. The fair value is estimated to be ₩3,006, 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. Meanwhile, the company has become profitable. Valuation Update With 7 Day Price Move • May 17
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩1,865, the stock trades at a trailing P/E ratio of 16.3x. Average trailing P/E is 15x in the Chemicals industry in South Korea. Total returns to shareholders of 19% over the past three years. Valuation Update With 7 Day Price Move • May 03
Investor sentiment improves as stock rises 38% After last week's 38% share price gain to ₩2,185, the stock trades at a trailing P/E ratio of 19.1x. Average trailing P/E is 14x in the Chemicals industry in South Korea. Total returns to shareholders of 38% over the past three years. Upcoming Dividend • Dec 21
Upcoming dividend of ₩5.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 11 April 2023. Payout ratio is a comfortable 2.3% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (2.4%). Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩1,990, the stock trades at a trailing P/E ratio of 12.2x. Average trailing P/E is 15x in the Chemicals industry in South Korea. Total loss to shareholders of 29% over the past three years. Reported Earnings • Apr 03
Full year 2021 earnings released: EPS: ₩160 (vs ₩53.00 loss in FY 2020) Full year 2021 results: EPS: ₩160 (up from ₩53.00 loss in FY 2020). Revenue: ₩49.3b (up 30% from FY 2020). Net income: ₩2.91b (up ₩3.89b from FY 2020). Profit margin: 5.9% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩2,170, the stock trades at a trailing P/E ratio of 25.3x. Average trailing P/E is 16x in the Chemicals industry in South Korea. Total loss to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ₩2,225, the stock trades at a trailing P/E ratio of 25.9x. Average trailing P/E is 16x in the Chemicals industry in South Korea. Total loss to shareholders of 14% over the past three years. Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improved over the past week After last week's 19% share price gain to ₩2,830, the stock trades at a trailing P/E ratio of 79.7x. Average trailing P/E is 20x in the Chemicals industry in South Korea. Total returns to shareholders of 19% over the past three years. Reported Earnings • Mar 12
Full year 2020 earnings released: ₩53.00 loss per share (vs ₩102 loss in FY 2019) The company reported a solid full year result with reduced losses, improved revenues and improved control over expenses. Full year 2020 results: Revenue: ₩37.9b (up 5.4% from FY 2019). Net loss: ₩972.8m (loss narrowed 48% from FY 2019). Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Jan 20
New 90-day high: ₩2,085 The company is up 5.0% from its price of ₩1,980 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 Chemicals industry, which is up 38% over the same period. Is New 90 Day High Low • Dec 28
New 90-day low: ₩1,795 The company is down 6.0% from its price of ₩1,915 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 Chemicals industry, which is up 25% over the same period.