Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩7,250, the stock trades at a trailing P/E ratio of 6.8x. Average trailing P/E is 13x in the Media industry in South Korea. Total returns to shareholders of 46% over the past three years. Buy Or Sell Opportunity • May 14
Now 25% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to ₩7,690. The fair value is estimated to be ₩10,301, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 3.3% over the last 3 years, while earnings per share has been flat. Reported Earnings • Mar 17
Full year 2025 earnings released: EPS: ₩1,072 (vs ₩1,400 in FY 2024) Full year 2025 results: EPS: ₩1,072 (down from ₩1,400 in FY 2024). Revenue: ₩483.9b (down 13% from FY 2024). Net income: ₩17.4b (down 23% from FY 2024). Profit margin: 3.6% (down from 4.1% in FY 2024). 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 increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Feb 14
HS Ad Inc., Annual General Meeting, Mar 20, 2026 HS Ad Inc., Annual General Meeting, Mar 20, 2026, at 10:00 Tokyo Standard Time. Location: grand ballroom, 58, mapo-daero, mapo-gu, seoul South Korea New Risk • Oct 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩141.8b (US$100.0m) 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 Dividend is not well covered by cash flows (111% cash payout ratio). Market cap is less than US$100m (₩141.8b market cap, or US$100.0m). Upcoming Dividend • Aug 20
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 27 August 2025. Payment date: 12 September 2025. Payout ratio is a comfortable 40% but the company is not cash flow positive. Trailing yield: 6.4%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (5.2%). Buy Or Sell Opportunity • Aug 19
Now 21% undervalued Over the last 90 days, the stock has risen 22% to ₩8,620. The fair value is estimated to be ₩10,942, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.7% over the last 3 years. Earnings per share has grown by 5.7%. Reported Earnings • Mar 14
Full year 2024 earnings released: EPS: ₩1,400 (vs ₩1,000 in FY 2023) Full year 2024 results: EPS: ₩1,400 (up from ₩1,000 in FY 2023). Revenue: ₩554.7b (up 1.2% from FY 2023). Net income: ₩22.7b (up 40% from FY 2023). Profit margin: 4.1% (up from 3.0% in FY 2023). Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 4% per year. Announcement • Feb 19
HS Ad Inc., Annual General Meeting, Mar 19, 2025 HS Ad Inc., Annual General Meeting, Mar 19, 2025, at 10:00 Tokyo Standard Time. Location: grand ballroom, 58, mapo-daero, mapo-gu, seoul South Korea New Risk • Feb 11
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 107% Dividend yield: 8.0% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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: Minor Risks Dividend is not well covered by cash flows (107% cash payout ratio). Market cap is less than US$100m (₩111.8b market cap, or US$77.1m). Buy Or Sell Opportunity • Apr 15
Now 20% undervalued Over the last 90 days, the stock has risen 3.0% to ₩6,200. The fair value is estimated to be ₩7,780, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 8.8%. Reported Earnings • Mar 19
Full year 2023 earnings released: EPS: ₩1,000 (vs ₩1,119 in FY 2022) Full year 2023 results: EPS: ₩1,000 (down from ₩1,119 in FY 2022). Revenue: ₩548.3b (up 3.4% from FY 2022). Net income: ₩16.2b (down 11% from FY 2022). Profit margin: 3.0% (down from 3.4% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 4% per year. Buy Or Sell Opportunity • Mar 14
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.0% to ₩6,250. The fair value is estimated to be ₩7,823, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 4.9%. Upcoming Dividend • Dec 20
Upcoming dividend of ₩400 per share at 6.2% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. Payout ratio is a comfortable 35% and this is well supported by cash flows. Trailing yield: 6.2%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (4.2%). Reported Earnings • Mar 22
Full year 2022 earnings released: EPS: ₩1,077 (vs ₩1,067 in FY 2021) Full year 2022 results: EPS: ₩1,077 (up from ₩1,067 in FY 2021). Revenue: ₩530.4b (up 16% from FY 2021). Net income: ₩17.5b (flat on FY 2021). Profit margin: 3.3% (down from 3.8% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩350 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 21 April 2023. Payout ratio is a comfortable 38% and the cash payout ratio is 93%. Trailing yield: 5.7%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (3.4%). Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 6 non-independent directors. Independent Outside Director Kyung Kang Pyung was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Buying Opportunity • Aug 08
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 6.1%. The fair value is estimated to be ₩7,574, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.7% over the last 3 years. Earnings per share has grown by 15%. Buying Opportunity • Jun 20
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 11%. The fair value is estimated to be ₩7,194, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 8.7% over the last 3 years. Earnings per share has grown by 15%. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 6 non-independent directors. Independent Outside Director Kyung Kang Pyung was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩6,460, the stock trades at a trailing P/E ratio of 5x. Average trailing P/E is 15x in the Media industry in South Korea. Total loss to shareholders of 10% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 13 April 2022. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 4.3%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (2.3%). Reported Earnings • Aug 23
Second quarter 2021 earnings released: EPS ₩243 (vs ₩33.00 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ₩107.7b (up 41% from 2Q 2020). Net income: ₩3.94b (up ₩3.41b from 2Q 2020). Profit margin: 3.7% (up from 0.7% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 17
Full year 2020 earnings released: EPS ₩558 (vs ₩941 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩375.6b (down 31% from FY 2019). Net income: ₩9.04b (down 41% from FY 2019). Profit margin: 2.4% (down from 2.8% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Feb 27
GIIR Inc., Annual General Meeting, Mar 19, 2021 GIIR Inc., Annual General Meeting, Mar 19, 2021, at 10:00 Korea Standard Time. Is New 90 Day High Low • Feb 26
New 90-day low: ₩5,320 The company is down 9.0% from its price of ₩5,870 on 27 November 2020. The South Korean market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Media industry, which is up 6.0% over the same period. Is New 90 Day High Low • Jan 21
New 90-day high: ₩6,050 The company is up 16% from its price of ₩5,200 on 23 October 2020. The South Korean market is up 31% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Media industry, which is up 10.0% over the same period. Is New 90 Day High Low • Dec 28
New 90-day high: ₩6,040 The company is up 20% from its price of ₩5,050 on 29 September 2020. The South Korean market is also up 20% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it outperformed the Media industry, which is up 7.0% over the same period. Is New 90 Day High Low • Nov 18
New 90-day high: ₩5,390 The company is up 12% from its price of ₩4,795 on 20 August 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 Media industry, which is up 10.0% over the same period. Is New 90 Day High Low • Oct 29
New 90-day high: ₩5,340 The company is up 7.0% from its price of ₩4,985 on 31 July 2020. The South Korean market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Media industry, which is up 6.0% over the same period.