New Risk • Jun 05
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩152.7b (US$99.5m) 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 Risks Interest payments are not well covered by earnings (0.9x net interest cover). Dividend is not well covered by earnings and cash flows. Dividend per share is over 19x earnings per share. Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Market cap is less than US$100m (₩152.7b market cap, or US$99.5m). New Risk • May 23
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 240% 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 Risks Interest payments are not well covered by earnings (0.9x net interest cover). Dividend is not well covered by earnings and cash flows. Dividend per share is over 19x earnings per share. Paying a dividend despite having no free cash flows. Minor Risk Large one-off items impacting financial results. Major Estimate Revision • May 20
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from ₩1,476 to ₩1,318 per share. Revenue forecast steady at ₩2.37b. Net income forecast to grow 703% next year vs 25% growth forecast for Forestry industry in South Korea. Consensus price target down from ₩11,000 to ₩10,250. Share price fell 4.0% to ₩6,940 over the past week. Upcoming Dividend • Mar 23
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 22 April 2026. The company is not currently making a profit and is not cash flow positive. Trailing yield: 6.1%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.9%). New Risk • Mar 18
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 6.0% 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 Interest payments are not well covered by earnings (1.2x net interest cover). 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. Announcement • Feb 24
Hansol Paper Co., Ltd., Annual General Meeting, Mar 23, 2026 Hansol Paper Co., Ltd., Annual General Meeting, Mar 23, 2026, at 09:01 Tokyo Standard Time. Location: grand ballroom, 6, myeongdong 3-gil, jung-gu, seoul South Korea Reported Earnings • Nov 16
Third quarter 2025 earnings released: ₩382 loss per share (vs ₩510 loss in 3Q 2024) Third quarter 2025 results: ₩382 loss per share (improved from ₩510 loss in 3Q 2024). Revenue: ₩554.8b (flat on 3Q 2024). Net loss: ₩9.09b (loss narrowed 25% from 3Q 2024). Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Forestry industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 99 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Sep 22
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 23 October 2025. The company is not currently making a profit but it is cash flow positive. Trailing yield: 5.8%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (2.7%). Reported Earnings • Aug 14
Second quarter 2025 earnings released: EPS: ₩357 (vs ₩401 loss in 2Q 2024) Second quarter 2025 results: EPS: ₩357 (up from ₩401 loss in 2Q 2024). Revenue: ₩565.0b (flat on 2Q 2024). Net income: ₩8.48b (up ₩18.0b from 2Q 2024). Profit margin: 1.5% (up from net loss in 2Q 2024). Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Forestry industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 89 percentage points per year, which is a significant difference in performance. Reported Earnings • May 21
First quarter 2025 earnings released: EPS: ₩282 (vs ₩996 in 1Q 2024) First quarter 2025 results: EPS: ₩282 (down from ₩996 in 1Q 2024). Revenue: ₩575.6b (up 7.8% from 1Q 2024). Net income: ₩6.71b (down 72% from 1Q 2024). Profit margin: 1.2% (down from 4.4% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Forestry industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. Reported Earnings • Mar 20
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: ₩1,278 loss per share (down from ₩74.00 profit in FY 2023). Revenue: ₩2.22t (up 1.0% from FY 2023). Net loss: ₩30.4b (down ₩32.2b from profit in FY 2023). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 9.6% growth forecast for the Forestry industry in Asia. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Feb 22
Hansol Paper Co., Ltd., Annual General Meeting, Mar 24, 2025 Hansol Paper Co., Ltd., Annual General Meeting, Mar 24, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 6, myeongdong 1-ga, jung-gu, seoul South Korea Major Estimate Revision • Dec 13
Consensus EPS estimates increase by 26% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ₩760 to ₩954. Revenue forecast steady at ₩2.26b. Net income forecast to grow 4,643% next year vs 34% growth forecast for Forestry industry in South Korea. Consensus price target of ₩13,333 unchanged from last update. Share price was steady at ₩8,890 over the past week. New Risk • Nov 20
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: 0.05% Last year net profit margin: 0.2% 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 Interest payments are not well covered by earnings (0.9x net interest cover). Minor Risks Dividend is not well covered by earnings (dividend per share is over 10x earnings per share). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.05% net profit margin). Major Estimate Revision • Nov 09
Consensus EPS estimates fall by 68% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩2,349 to ₩760 per share. Revenue forecast steady at ₩2.27b. Net income forecast to grow 153% next year vs 38% growth forecast for Forestry industry in South Korea. Consensus price target of ₩13,333 unchanged from last update. Share price was steady at ₩9,230 over the past week. Price Target Changed • Nov 08
Price target decreased by 13% to ₩13,333 Down from ₩15,333, the current price target is an average from 3 analysts. New target price is 44% above last closing price of ₩9,230. Stock is down 8.6% over the past year. The company is forecast to post earnings per share of ₩2,563 for next year compared to ₩73.97 last year. Upcoming Dividend • Sep 20
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 23 October 2024. Payout ratio is on the higher end at 97%, however this is supported by cash flows. Trailing yield: 5.2%. Within top quartile of South Korean dividend payers (3.8%). Higher than average of industry peers (3.7%). Reported Earnings • Aug 16
Second quarter 2024 earnings released: ₩401 loss per share (vs ₩290 profit in 2Q 2023) Second quarter 2024 results: ₩401 loss per share (down from ₩290 profit in 2Q 2023). Revenue: ₩563.0b (up 6.6% from 2Q 2023). Net loss: ₩9.54b (down 238% from profit in 2Q 2023). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Forestry industry in Asia. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Jul 10
Consensus EPS estimates fall by 37% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from ₩3,811 to ₩2,399 per share. Revenue forecast steady at ₩2.21b. Net income forecast to grow 87% next year vs 28% growth forecast for Forestry industry in South Korea. Consensus price target of ₩15,333 unchanged from last update. Share price was steady at ₩10,660 over the past week. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: ₩996 (vs ₩340 loss in 1Q 2023) First quarter 2024 results: EPS: ₩996 (up from ₩340 loss in 1Q 2023). Revenue: ₩534.1b (down 4.8% from 1Q 2023). Net income: ₩23.7b (up ₩31.8b from 1Q 2023). Profit margin: 4.4% (up from net loss in 1Q 2023). Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Forestry industry in Asia. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 11% per year. Major Estimate Revision • May 09
Consensus EPS estimates increase by 46%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from ₩2.24b to ₩2.20b. EPS estimate rose from ₩1,955 to ₩2,853. Net income forecast to grow 3,760% next year vs 27% growth forecast for Forestry industry in South Korea. Consensus price target up from ₩14,667 to ₩15,333. Share price was steady at ₩10,830 over the past week. Upcoming Dividend • Dec 20
Upcoming dividend of ₩500 per share at 6.6% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 6.6%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (4.0%). New Risk • Nov 25
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 39% 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 (1.1x net interest cover). Minor Risks Dividend is not well covered by earnings (444% payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Major Estimate Revision • Nov 11
Consensus EPS estimates fall by 52% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from ₩2.30b to ₩2.15b. EPS estimate also fell from ₩2,102 per share to ₩1,010 per share. Net income forecast to grow 135% next year vs 40% growth forecast for Forestry industry in South Korea. Consensus price target down from ₩15,500 to ₩14,500. Share price was steady at ₩10,100 over the past week. Upcoming Dividend • Sep 19
Upcoming dividend of ₩200 per share at 6.5% yield Eligible shareholders must have bought the stock before 26 September 2023. Payment date: 20 October 2023. Payout ratio is on the higher end at 75% but the company is not cash flow positive. Trailing yield: 6.5%. Within top quartile of South Korean dividend payers (3.4%). Higher than average of industry peers (2.1%). Upcoming Dividend • Jun 22
Upcoming dividend of ₩200 per share at 6.2% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 10 August 2023. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 6.2%. Within top quartile of South Korean dividend payers (3.2%). Higher than average of industry peers (2.7%). Price Target Changed • May 24
Price target decreased by 7.7% to ₩18,000 Down from ₩19,500, the current price target is an average from 2 analysts. New target price is 59% above last closing price of ₩11,340. Stock is down 17% over the past year. The company is forecast to post earnings per share of ₩2,140 for next year compared to ₩3,104 last year. Reported Earnings • Mar 17
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: ₩3,104 (up from ₩575 in FY 2021). Revenue: ₩2.46t (up 34% from FY 2021). Net income: ₩73.8b (up 440% from FY 2021). Profit margin: 3.0% (up from 0.7% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 23%. Revenue is forecast to grow 9.6% p.a. on average during the next 2 years, compared to a 8.1% growth forecast for the Forestry industry in Asia. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 24 April 2023. Payout ratio is a comfortable 28% but the company is not cash flow positive. Trailing yield: 5.1%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.4%). Reported Earnings • Nov 17
Third quarter 2022 earnings released: EPS: ₩934 (vs ₩17.00 in 3Q 2021) Third quarter 2022 results: EPS: ₩934 (up from ₩17.00 in 3Q 2021). Revenue: ₩616.5b (up 37% from 3Q 2021). Net income: ₩22.2b (up ₩21.8b from 3Q 2021). Profit margin: 3.6% (up from 0.1% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Forestry industry in Asia. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jul 28
Consensus revenue estimates increase by 19% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from ₩1.82b to ₩2.17b. EPS estimate increased from ₩2,579 to ₩2,812 per share. Net income forecast to grow 272% next year vs 25% growth forecast for Forestry industry in South Korea. Consensus price target of ₩19,000 unchanged from last update. Share price rose 5.9% to ₩14,300 over the past week. Upcoming Dividend • Jun 22
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 22 August 2022. Payout ratio is on the higher end at 76% but the company is not cash flow positive. Trailing yield: 5.9%. Within top quartile of South Korean dividend payers (3.2%). Higher than average of industry peers (2.7%). Price Target Changed • Jan 28
Price target decreased to ₩19,500 Down from ₩21,500, the current price target is provided by 1 analyst. New target price is 68% above last closing price of ₩11,600. Stock is down 11% over the past year. The company is forecast to post earnings per share of ₩2,295 for next year compared to ₩2,105 last year. Upcoming Dividend • Dec 22
Upcoming dividend of ₩400 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 April 2022. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 3.0%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.8%). Price Target Changed • Jul 26
Price target increased to ₩22,500 Up from ₩20,300, the current price target is provided by 1 analyst. New target price is 41% above last closing price of ₩16,000. Stock is up 10.0% over the past year. Upcoming Dividend • Jun 22
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 24 August 2021. Trailing yield: 3.9%. Within top quartile of South Korean dividend payers (2.1%). Higher than average of industry peers (1.3%). Reported Earnings • Mar 21
Full year 2020 earnings released: EPS ₩2,105 (vs ₩2,229 in FY 2019) The company reported a soft full year result with weaker earnings and revenues, although profit margins were improved. Full year 2020 results: Revenue: ₩1.51t (down 10% from FY 2019). Net income: ₩50.0b (down 5.6% from FY 2019). Profit margin: 3.3% (up from 3.2% in FY 2019). The increase in margin was driven by lower expenses. 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 3% per year, which means it is significantly lagging earnings. Announcement • Feb 27
Hansol Paper Co., Ltd., Annual General Meeting, Mar 24, 2021 Hansol Paper Co., Ltd., Annual General Meeting, Mar 24, 2021, at 09:00 Korea Standard Time. Is New 90 Day High Low • Nov 02
New 90-day low: ₩12,900 The company is down 6.0% from its price of ₩13,700 on 04 August 2020. The South Korean market is flat over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Forestry industry, which is down 7.0% over the same period. Announcement • Sep 08
Harbour Investment GmbH Unternehmensberatungs- und Beteiligungsgesellschaft completed the acquisition of Schades A/S and R+S Group GmbH from Hansol Paper Co., Ltd. (KOSE:A213500) and Miraeasset Daewoo Hunters Private Equity Fund. Harbour Investment GmbH Unternehmensberatungs- und Beteiligungsgesellschaft signed a contract to acquire Schades A/S and R+S Group GmbH from Hansol Paper Co., Ltd. (KOSE:A213500) and Miraeasset Daewoo Hunters Private Equity Fund on March 16, 2020. As per terms, out of the 6 shares, 5 shares of R+S Group will be acquired for KRW 12.9 billion from Hansol Paper. Post completion, Hansol Paper Co., Ltd. will not hold shares in R+S Group GmbH. The transaction is resolved by the Board of Directors of Hansol Paper Co., Ltd. on March 16, 2020. The deal is expected to close on April 15, 2020. Gleiss Lutz acted as legal advisor to Hansol Paper. Regina Engelstaedter, Viktoria Ruppel, Arthur Eichmann, Uwe Halbig and Fritz Kleweta of Paul Hastings LLP acted as legal advisor to Harbour Investment.
Harbour Investment GmbH Unternehmensberatungs- und Beteiligungsgesellschaft completed the acquisition of Schades A/S and R+S Group GmbH from Hansol Paper Co., Ltd. (KOSE:A213500) and Miraeasset Daewoo Hunters Private Equity Fund on April 1, 2020.