Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩27,000, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 18x in the Semiconductor industry in South Korea. Total returns to shareholders of 118% over the past three years. New Risk • May 30
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 35% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩30,200, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 25x in the Semiconductor industry in South Korea. Total returns to shareholders of 144% over the past three years. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩38,700, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 22x in the Semiconductor industry in South Korea. Total returns to shareholders of 241% over the past three years. Reported Earnings • Mar 17
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: ₩1,045 (down from ₩1,841 in FY 2024). Revenue: ₩328.1b (down 1.8% from FY 2024). Net income: ₩15.4b (down 43% from FY 2024). Profit margin: 4.7% (down from 8.1% in FY 2024). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 5.0%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 31% p.a. on average during the next 2 years, compared to a 28% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has increased by 39% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩33,950, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 21x in the Semiconductor industry in South Korea. Total returns to shareholders of 222% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩61,681 per share. Announcement • Feb 20
STI Co., Ltd., Annual General Meeting, Mar 20, 2026 STI Co., Ltd., Annual General Meeting, Mar 20, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 21, bonggi-gil, gongdo-eup, gyeonggi-do, anseong South Korea Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩33,600, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 17x in the Semiconductor industry in South Korea. Total returns to shareholders of 170% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩54,731 per share. Price Target Changed • Jan 06
Price target increased by 12% to ₩35,000 Up from ₩31,333, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of ₩34,350. Stock is up 75% over the past year. The company is forecast to post earnings per share of ₩1,290 for next year compared to ₩1,841 last year. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩34,950, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 193% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩53,816 per share. Upcoming Dividend • Dec 22
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 10 April 2026. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 0.7%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (0.4%). Valuation Update With 7 Day Price Move • Dec 11
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩30,000, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 134% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩51,657 per share. New Risk • Nov 18
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 7.9% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 16
Third quarter 2025 earnings released: EPS: ₩169 (vs ₩69.00 in 3Q 2024) Third quarter 2025 results: EPS: ₩169 (up from ₩69.00 in 3Q 2024). Revenue: ₩70.3b (up 14% from 3Q 2024). Net income: ₩2.50b (up 146% from 3Q 2024). Profit margin: 3.6% (up from 1.7% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Declared Dividend • Nov 08
Dividend of ₩200 announced Dividend of ₩200 is the same as last year. Ex-date: 29th December 2025 Payment date: 10th April 2026 Dividend yield will be 0.9%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (12% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has decreased over the past 86 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 184% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 07
STI Co., Ltd. announces Annual dividend, payable on April 10, 2026 STI Co., Ltd. announced Annual dividend of KRW 200.0000 per share payable on April 10, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩23,250, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 97% over the past three years. Price Target Changed • Sep 03
Price target decreased by 8.5% to ₩28,667 Down from ₩31,333, the current price target is an average from 3 analysts. New target price is 62% above last closing price of ₩17,700. Stock is down 14% over the past year. The company is forecast to post earnings per share of ₩1,788 for next year compared to ₩1,841 last year. Major Estimate Revision • Aug 21
Consensus revenue estimates fall by 24% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ₩521.7m to ₩395.9m. EPS estimate fell from ₩3,328 to ₩1,726 per share. Net income forecast to grow 41% next year vs 16% growth forecast for Semiconductor industry in South Korea. Consensus price target down from ₩31,333 to ₩30,667. Share price fell 6.3% to ₩17,630 over the past week. New Risk • Jul 10
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.1% 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: Major Risk High level of non-cash earnings (28% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. New Risk • May 21
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 28% 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 (28% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (9.5% average weekly change). Buy Or Sell Opportunity • Apr 22
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to ₩19,400. The fair value is estimated to be ₩24,768, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.1% over the last 3 years. Earnings per share has declined by 14%. For the next 3 years, revenue is forecast to grow by 17% per annum. Earnings are also forecast to grow by 28% per annum over the same time period. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩17,900, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 10x in the Semiconductor industry in South Korea. Negligible returns to shareholders over past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩24,661 per share. Buy Or Sell Opportunity • Apr 07
Now 28% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.1% to ₩17,860. The fair value is estimated to be ₩24,680, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 9.1% over the last 3 years. Earnings per share has declined by 14%. For the next 3 years, revenue is forecast to grow by 17% per annum. Earnings are also forecast to grow by 28% per annum over the same time period. Price Target Changed • Apr 04
Price target decreased by 7.3% to ₩38,000 Down from ₩41,000, the current price target is an average from 3 analysts. New target price is 91% above last closing price of ₩19,920. Stock is down 42% over the past year. The company is forecast to post earnings per share of ₩3,543 for next year compared to ₩1,841 last year. New Risk • Mar 26
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 8.4% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩23,250, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 14x in the Semiconductor industry in South Korea. Total returns to shareholders of 30% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩44,154 per share. Reported Earnings • Mar 15
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: ₩1,841 (up from ₩1,631 in FY 2023). Revenue: ₩334.0b (up 4.6% from FY 2023). Net income: ₩27.1b (up 13% from FY 2023). Profit margin: 8.1% (up from 7.5% in FY 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) also surpassed analyst estimates by 41%. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Feb 20
STI Co., Ltd., Annual General Meeting, Mar 21, 2025 STI Co., Ltd., Annual General Meeting, Mar 21, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 21, bonggi-gil, gongdo-eup, gyeonggi-do, anseong South Korea Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩23,500, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 14x in the Semiconductor industry in South Korea. Total returns to shareholders of 39% over the past three years. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩18,800, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Semiconductor industry in South Korea. Total returns to shareholders of 10% over the past three years. Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩20,650, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Semiconductor industry in South Korea. Total returns to shareholders of 12% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 14 April 2025. Payout ratio is a comfortable 15% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (0.8%). Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩17,700, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 14x in the Semiconductor industry in South Korea. Total returns to shareholders of 11% over the past three years. Price Target Changed • Nov 08
Price target decreased by 12% to ₩45,667 Down from ₩51,667, the current price target is an average from 3 analysts. New target price is 133% above last closing price of ₩19,630. Stock is down 43% over the past year. The company is forecast to post earnings per share of ₩1,781 for next year compared to ₩1,632 last year. Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩22,200, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Semiconductor industry in South Korea. Total returns to shareholders of 49% over the past three years. Valuation Update With 7 Day Price Move • Sep 04
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₩20,650, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Semiconductor industry in South Korea. Total returns to shareholders of 27% over the past three years. Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩21,950, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 13x in the Semiconductor industry in South Korea. Total returns to shareholders of 29% over the past three years. Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩29,150, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 17x in the Semiconductor industry in South Korea. Total returns to shareholders of 77% over the past three years. Major Estimate Revision • Jun 13
Consensus EPS estimates increase by 13% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from ₩2,571 to ₩2,901. Revenue forecast unchanged at ₩450.3m. Net income forecast to grow 163% next year vs 68% growth forecast for Semiconductor industry in South Korea. Consensus price target of ₩52,667 unchanged from last update. Share price rose 11% to ₩35,650 over the past week. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: ₩274 (vs ₩596 in 1Q 2023) First quarter 2024 results: EPS: ₩274 (down from ₩596 in 1Q 2023). Revenue: ₩65.5b (down 23% from 1Q 2023). Net income: ₩4.05b (down 54% from 1Q 2023). Profit margin: 6.2% (down from 10% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Major Estimate Revision • May 17
Consensus revenue estimates fall by 13% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from ₩474.3m to ₩414.6m. EPS estimate fell from ₩3,158 to ₩2,440 per share. Net income forecast to grow 69% next year vs 58% growth forecast for Semiconductor industry in South Korea. Consensus price target of ₩51,667 unchanged from last update. Share price rose 9.5% to ₩35,650 over the past week. Buy Or Sell Opportunity • Apr 19
Now 27% overvalued after recent price rise Over the last 90 days, the stock has risen 50% to ₩42,000. The fair value is estimated to be ₩33,136, however this is not to be taken as a sell 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 24%. Revenue is forecast to grow by 79% in 2 years. Earnings are forecast to grow by 150% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩30,500, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 19x in the Semiconductor industry in South Korea. Total returns to shareholders of 65% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩43,902 per share. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩30,000, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 59% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩44,255 per share. Upcoming Dividend • Dec 20
Upcoming dividend of ₩250 per share at 0.9% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 10 April 2024. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (1.0%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩129 (vs ₩934 in 3Q 2022) Third quarter 2023 results: EPS: ₩129 (down from ₩934 in 3Q 2022). Revenue: ₩66.8b (down 45% from 3Q 2022). Net income: ₩1.91b (down 86% from 3Q 2022). Profit margin: 2.9% (down from 12% 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 28% per year whereas the company’s share price has increased by 30% per year. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improves as stock rises 29% After last week's 29% share price gain to ₩35,250, the stock trades at a trailing P/E ratio of 22.3x. Average trailing P/E is 14x in the Semiconductor industry in South Korea. Total returns to shareholders of 145% over the past three years. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩32,650, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 98% over the past three years. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩28,300, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 89% over the past three years. New Risk • Aug 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: 6.0% Last year net profit margin: 8.9% 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 (13% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (6.0% net profit margin). Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment improves as stock rises 44% After last week's 44% share price gain to ₩28,450, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Semiconductor industry in South Korea. Total returns to shareholders of 74% over the past three years. Price Target Changed • Jul 05
Price target increased by 67% to ₩25,000 Up from ₩15,000, the current price target is provided by 1 analyst. New target price is 26% above last closing price of ₩19,900. Stock is up 33% over the past year. The company is forecast to post earnings per share of ₩1,613 for next year compared to ₩1,999 last year. New Risk • Jul 03
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 8.4% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.4% average weekly change). Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩20,300, the stock trades at a trailing P/E ratio of 8.9x. Average forward P/E is 14x in the Semiconductor industry in South Korea. Total returns to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to ₩15,780, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 12x in the Semiconductor industry in South Korea. Total returns to shareholders of 2.9% over the past three years. Reported Earnings • May 18
First quarter 2023 earnings released: EPS: ₩596 (vs ₩337 in 1Q 2022) First quarter 2023 results: EPS: ₩596 (up from ₩337 in 1Q 2022). Revenue: ₩85.3b (up 7.0% from 1Q 2022). Net income: ₩8.83b (up 74% from 1Q 2022). Profit margin: 10% (up from 6.4% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 6.1% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 22
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: ₩1,999 (up from ₩1,544 in FY 2021). Revenue: ₩422.4b (up 32% from FY 2021). Net income: ₩29.8b (up 29% from FY 2021). Profit margin: 7.1% (down from 7.3% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 5.0% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 10 April 2023. Payout ratio is a comfortable 7.0% but the company is not cash flow positive. Trailing yield: 1.6%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (1.8%). Major Estimate Revision • Nov 18
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from ₩414.5m to ₩425.4m. EPS estimate increased from ₩2,217 to ₩2,574 per share. Net income forecast to grow 4.3% next year vs 22% growth forecast for Semiconductor industry in South Korea. Consensus price target of ₩22,000 unchanged from last update. Share price was steady at ₩14,000 over the past week. Reported Earnings • Nov 17
Third quarter 2022 earnings released: EPS: ₩934 (vs ₩569 in 3Q 2021) Third quarter 2022 results: EPS: ₩934 (up from ₩569 in 3Q 2021). Revenue: ₩120.6b (up 47% from 3Q 2021). Net income: ₩13.9b (up 62% from 3Q 2021). Profit margin: 12% (up from 10% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 16
Price target decreased to ₩22,000 Down from ₩24,000, the current price target is provided by 1 analyst. New target price is 50% above last closing price of ₩14,650. Stock is down 12% over the past year. The company is forecast to post earnings per share of ₩2,217 for next year compared to ₩1,545 last year. Announcement • Oct 05
STI Co., Ltd. (KOSDAQ:A039440) announces an Equity Buyback for KRW 3,000 million worth of its shares. STI Co., Ltd. (KOSDAQ:A039440) announces a share repurchase program. Under the program, the company will repurchase up to KRW 3,000 million worth of its shares, pursuant the contract with Samsung Securities Co., Ltd. The purpose of the program is to enhance shareholder value. The program will expire on April 3, 2023. As of October 3, 2022, the company had 971,000 shares in treasury within scope available for dividend and 0 shares in treasury through other repurchase. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩18,050, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 10x in the Semiconductor industry in South Korea. Total returns to shareholders of 21% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩150 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 11 April 2022. Payout ratio is a comfortable 18% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of South Korean dividend payers (2.4%). In line with average of industry peers (0.9%). Reported Earnings • Nov 16
Third quarter 2021 earnings released: EPS ₩569 (vs ₩222 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: ₩82.2b (down 1.0% from 3Q 2020). Net income: ₩8.55b (up 156% from 3Q 2020). Profit margin: 10% (up from 4.0% in 3Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Is New 90 Day High Low • Jan 26
New 90-day high: ₩20,550 The company is up 42% from its price of ₩14,500 on 28 October 2020. The South Korean market is up 36% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Semiconductor industry, which is up 55% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is ₩43,142 per share.