New Risk • Mar 24
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: 9.3% Last year net profit margin: 16% 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: Minor Risks Profit margins are more than 30% lower than last year (9.3% net profit margin). Market cap is less than US$100m (₩67.6b market cap, or US$45.2m). Announcement • Mar 12
Sinil Pharmaceutical Co., Ltd., Annual General Meeting, Mar 26, 2026 Sinil Pharmaceutical Co., Ltd., Annual General Meeting, Mar 26, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 28, boksanggol-gil, angseong-myeon, chungcheongbuk-do, chungju South Korea Reported Earnings • Nov 19
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: ₩20.6b (flat on 3Q 2024). Net income: ₩2.61b (down 5.9% from 3Q 2024). Profit margin: 13% (in line with 3Q 2024). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Mar 08
Sinil Pharmaceutical Co., Ltd., Annual General Meeting, Mar 24, 2025 Sinil Pharmaceutical Co., Ltd., Annual General Meeting, Mar 24, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 28, boksanggol-gil, angseong-myeon, chungcheongbuk-do, chungju South Korea Reported Earnings • Nov 20
Third quarter 2024 earnings released: EPS: ₩240 (vs ₩300 in 3Q 2023) Third quarter 2024 results: EPS: ₩240 (down from ₩300 in 3Q 2023). Revenue: ₩20.6b (down 19% from 3Q 2023). Net income: ₩2.77b (down 20% from 3Q 2023). Profit margin: 13% (in line with 3Q 2023). Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩96.15 per share at 1.3% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. Trailing yield: 1.3%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.1%). New Risk • Nov 20
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 22% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (22% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (₩82.1b market cap, or US$63.5m). Reported Earnings • Nov 20
Third quarter 2023 earnings released: EPS: ₩300 (vs ₩213 in 3Q 2022) Third quarter 2023 results: EPS: ₩300 (up from ₩213 in 3Q 2022). Revenue: ₩25.4b (up 25% from 3Q 2022). Net income: ₩3.47b (up 41% from 3Q 2022). Profit margin: 14% (up from 12% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 31% per year, which means it is significantly lagging earnings. Reported Earnings • May 19
First quarter 2023 earnings released: EPS: ₩329 (vs ₩217 in 1Q 2022) First quarter 2023 results: EPS: ₩329 (up from ₩217 in 1Q 2022). Revenue: ₩21.8b (up 22% from 1Q 2022). Net income: ₩3.80b (up 51% from 1Q 2022). Profit margin: 17% (up from 14% in 1Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩97.09 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. Trailing yield: 1.1%. Lower than top quartile of South Korean dividend payers (3.3%). In line with average of industry peers (1.0%). 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. 9 experienced directors. No highly experienced directors. 3 independent directors (6 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. Buying Opportunity • Oct 11
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 24%. The fair value is estimated to be ₩9,912, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.8% over the last 3 years. Earnings per share has grown by 5.7%. Buying Opportunity • Sep 16
Now 20% undervalued Over the last 90 days, the stock is up 2.1%. The fair value is estimated to be ₩10,911, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.8% over the last 3 years. Earnings per share has grown by 5.7%. Valuation Update With 7 Day Price Move • Jul 13
Investor sentiment improved over the past week After last week's 16% share price gain to ₩10,150, the stock trades at a trailing P/E ratio of 13.5x. Average trailing P/E is 22x in the Pharmaceuticals industry in South Korea. Total returns to shareholders of 67% over the past three years. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment deteriorated over the past week After last week's 19% share price decline to ₩8,260, the stock trades at a trailing P/E ratio of 11x. Average trailing P/E is 22x in the Pharmaceuticals industry in South Korea. Total returns to shareholders of 33% over the past three years. 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. 9 experienced directors. No highly experienced directors. 3 independent directors (6 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
Inaugural dividend of ₩97.09 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 18 April 2022. The company is not currently making a profit but it is cash flow positive. This is the first dividend for Sinil Pharmaceutical since going public. The average dividend yield among industry peers is 0.8%. Valuation Update With 7 Day Price Move • Oct 06
Investor sentiment deteriorated over the past week After last week's 19% share price decline to ₩11,600, the stock trades at a trailing P/E ratio of 22.8x. Average trailing P/E is 24x in the Pharmaceuticals industry in South Korea. Total returns to shareholders of 59% over the past three years. Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment improved over the past week After last week's 20% share price gain to ₩19,150, the stock trades at a trailing P/E ratio of 30.9x. Average trailing P/E is 27x in the Pharmaceuticals industry in South Korea. Total returns to shareholders of 168% over the past three years. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improved over the past week After last week's 15% share price gain to ₩15,850, the stock trades at a trailing P/E ratio of 22.1x. Average trailing P/E is 28x in the Pharmaceuticals industry in South Korea. Total returns to shareholders of 50% over the past three years. Is New 90 Day High Low • Jan 15
New 90-day low: ₩19,000 The company is down 19% from its price of ₩23,592 on 16 October 2020. The South Korean market is up 32% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 20% over the same period. Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩20,150, the stock is trading at a trailing P/E ratio of 26.1x, down from the previous P/E ratio of 30.9x. This compares to an average P/E of 29x in the Pharmaceuticals industry in South Korea. Total returns to shareholders over the past three years are 141%. Valuation Update With 7 Day Price Move • Dec 02
Market bids up stock over the past week After last week's 15% share price gain to ₩25,800, the stock is trading at a trailing P/E ratio of 32.4x, up from the previous P/E ratio of 28.1x. This compares to an average P/E of 30x in the Pharmaceuticals industry in South Korea. Total returns to shareholders over the past three years are 199%. Is New 90 Day High Low • Nov 11
New 90-day low: ₩20,300 The company is down 23% from its price of ₩26,300 on 13 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 2.0% over the same period. Is New 90 Day High Low • Oct 18
New 90-day low: ₩24,300 The company is down 8.0% from its price of ₩26,500 on 20 July 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 6.0% over the same period.