Buy Or Sell Opportunity • May 04
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 69% to ₩14,130. The fair value is estimated to be ₩11,060, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 16% per annum. Earnings are also forecast to grow by 52% per annum over the same time period. Major Estimate Revision • Apr 24
Consensus EPS estimates increase by 57%, revenue downgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast fell from ₩579.5m to ₩564.8m. EPS estimate rose from ₩183 to ₩288. Net income forecast to grow 482% next year vs 62% growth forecast for Chemicals industry in South Korea. Consensus price target up from ₩12,000 to ₩20,000. Share price fell 5.4% to ₩13,070 over the past week. New Risk • Apr 04
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 13% 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 Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risk Share price has been volatile over the past 3 months (13% average weekly change). New Risk • Apr 02
New major risk - Revenue and earnings growth Earnings have declined by 57% 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 (1.5x net interest cover). Earnings have declined by 57% per year over the past 5 years. New Risk • Oct 27
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 11% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.7x net interest cover). Share price has been highly volatile over the past 3 months (11% average weekly change). Announcement • Oct 24
Foosung Co., Ltd. announced that it expects to receive KRW 27 billion in funding Foosung Co., Ltd. announced private placement of Series 2 Zero Coupon Registered Unsecured Private Convertible Bonds due November 05, 2030 for gross proceeds of KRW 27,000,000,000 on October 23, 2025. The transaction includes participation from Heimdall No.2 PEF for KRW 20,000,000,000 and Fluoro Mateiral New Technology Fund for KRW 7,000,000,000. The bonds bear no interest rate and have a yield to maturity rate of 5.7%. The bonds will mature on November 05, 2030. The bonds are 100% convertible into 3,937,582 shares at a conversion price of KRW 6,857 from the conversion period of November 05, 2026 to October 05, 2030. The bonds have a restriction period of 1 year. The transaction is approved by board of directors of the company and is expected to close on November 05, 2025. New Risk • Sep 15
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 7.7% 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 Interest payments are not well covered by earnings (0.7x net interest cover). Minor Risk Share price has been volatile over the past 3 months (7.7% average weekly change). Major Estimate Revision • May 02
Consensus EPS estimates have been downgraded. The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ₩567.0m to ₩550.9m. Now expected to report a loss of ₩49.00 per share instead of ₩69.00 per share profit previously forecast. Chemicals industry in South Korea expected to see average net income growth of 35% next year. Consensus price target down from ₩14,000 to ₩10,000. Share price was steady at ₩4,400 over the past week. Reported Earnings • Mar 21
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: ₩668 loss per share (further deteriorated from ₩556 loss in FY 2023). Revenue: ₩437.8b (down 16% from FY 2023). Net loss: ₩69.4b (loss widened 29% from FY 2023). Revenue missed analyst estimates by 6.6%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. Announcement • Feb 19
Foosung Co., Ltd., Annual General Meeting, Mar 25, 2025 Foosung Co., Ltd., Annual General Meeting, Mar 25, 2025, at 10:00 Tokyo Standard Time. Location: auditorium, 72-37, hyundaikia-ro, paltan-myeon, gyeonggi-do, hwaseong South Korea New Risk • Jan 24
New major risk - Revenue and earnings growth Earnings have declined by 15% 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 15% per year over the past 5 years. Minor Risk High level of debt (67% net debt to equity). Major Estimate Revision • May 24
Consensus revenue estimates fall by 16% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from ₩612.4m to ₩516.6m. Forecast loss of -₩107, down from profit of ₩91.00 per share profit previously. Chemicals industry in South Korea expected to see average net income growth of 31% next year. Consensus price target down from ₩20,000 to ₩17,000. Share price fell 3.6% to ₩7,010 over the past week. New Risk • May 01
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 14% 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 Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risk Shareholders have been diluted in the past year (14% increase in shares outstanding). Announcement • Jan 26
Foosung Co., Ltd. has filed a Follow-on Equity Offering in the amount of KRW 101.290324 billion. Foosung Co., Ltd. has filed a Follow-on Equity Offering in the amount of KRW 101.290324 billion.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 12,903,226
Price\Range: KRW 7850
Discount Per Security: KRW 39.25
Transaction Features: ESOP Related Offering; Rights Offering Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩8,620, the stock trades at a forward P/E ratio of 52x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total loss to shareholders of 28% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩20.00 per share at 0.2% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 08 April 2024. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 0.2%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (1.8%). New Risk • Aug 23
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: 5.8% Last year net profit margin: 14% 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 Risks Interest payments are not well covered by earnings (0.1x net interest cover). High level of non-cash earnings (26% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (5.8% net profit margin). New Risk • Aug 16
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 (2.6x net interest cover). Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. High level of non-cash earnings (22% accrual ratio). Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to ₩16,620, the stock trades at a trailing P/E ratio of 16.2x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total returns to shareholders of 174% over the past three years. Reported Earnings • Mar 24
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: ₩1,047 (up from ₩244 in FY 2021). Revenue: ₩610.6b (up 60% from FY 2021). Net income: ₩97.0b (up 330% from FY 2021). Profit margin: 16% (up from 5.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) missed analyst estimates by 20%. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩15.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 07 April 2023. Payout ratio is a comfortable 2.0% but the company is not cash flow positive. Trailing yield: 0.1%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (2.4%). Board Change • Nov 16
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. 4 experienced directors. No highly experienced directors. No 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: Lack of independent directors. Insufficient board refreshment. Buying Opportunity • Sep 28
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 32%. The fair value is estimated to be ₩15,184, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has grown by 75%. Revenue is forecast to grow by 37% in 2 years. Earnings is forecast to grow by 58% in the next 2 years. Buying Opportunity • Aug 05
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 18%. The fair value is estimated to be ₩20,863, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to grow by 45% in 2 years. Earnings is forecast to grow by 88% in the next 2 years. Buying Opportunity • Jul 12
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 23%. The fair value is estimated to be ₩20,767, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 37%. Revenue is forecast to grow by 45% in 2 years. Earnings is forecast to grow by 88% in the next 2 years. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩17,900, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 10x in the Chemicals industry in South Korea. Total returns to shareholders of 157% over the past three years. Valuation Update With 7 Day Price Move • May 23
Investor sentiment improved over the past week After last week's 29% share price gain to ₩26,250, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 12x in the Chemicals industry in South Korea. Total returns to shareholders of 263% over the past three years. Board Change • Apr 27
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. 4 experienced directors. No highly experienced directors. No 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: Lack of independent directors. Insufficient board refreshment. 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 ₩19,850, the stock trades at a forward P/E ratio of 42x. Average forward P/E is 10x in the Chemicals industry in South Korea. Total returns to shareholders of 141% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩18,551 per share. Reported Earnings • Mar 25
Full year 2020 earnings released: EPS ₩65.00 (vs ₩87.00 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: ₩261.6b (up 5.1% from FY 2019). Net income: ₩5.99b (down 26% from FY 2019). Profit margin: 2.3% (down from 3.3% in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance. Announcement • Feb 27
Foosung Co., Ltd., Annual General Meeting, Mar 30, 2021 Foosung Co., Ltd., Annual General Meeting, Mar 30, 2021, at 10:00 Korea Standard Time. Is New 90 Day High Low • Jan 19
New 90-day high: ₩13,150 The company is up 41% from its price of ₩9,300 on 21 October 2020. The South Korean market is up 26% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 35% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩17,381 per share. Is New 90 Day High Low • Dec 18
New 90-day high: ₩11,500 The company is up 10.0% from its price of ₩10,500 on 18 September 2020. The South Korean market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 18% over the same period.