Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩181,100, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 23x in the Semiconductor industry in South Korea. Total returns to shareholders of 206% over the past three years. Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩186,700, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 24x in the Semiconductor industry in South Korea. Total returns to shareholders of 244% over the past three years. Price Target Changed • May 09
Price target increased by 14% to ₩121,333 Up from ₩106,667, the current price target is an average from 3 analysts. New target price is 28% below last closing price of ₩168,100. Stock is up 341% over the past year. The company is forecast to post earnings per share of ₩6,550 for next year compared to ₩6,285 last year. Major Estimate Revision • Apr 23
Consensus EPS estimates fall by 17% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from ₩7,466 to ₩6,176 per share. Revenue forecast steady at ₩1.63b. Net income forecast to grow 4.5% next year vs 78% growth forecast for Semiconductor industry in South Korea. Consensus price target up from ₩106,667 to ₩113,333. Share price rose 33% to ₩137,200 over the past week. New Risk • Apr 20
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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to ₩125,600, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 24x in the Semiconductor industry in South Korea. Total returns to shareholders of 106% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩109,104 per share. Buy Or Sell Opportunity • Mar 23
Now 22% undervalued Over the last 90 days, the stock has risen 21% to ₩83,800. The fair value is estimated to be ₩107,545, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 7.1% over the last 3 years. Earnings per share has declined by 25%. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 50% in the next 2 years. Reported Earnings • Mar 20
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: ₩6,285 (up from ₩5,520 in FY 2024). Revenue: ₩1.40t (up 24% from FY 2024). Net income: ₩256.1b (up 12% from FY 2024). Profit margin: 18% (down from 20% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 3.6%. Revenue is forecast to grow 8.0% p.a. on average during the next 2 years, compared to a 29% growth forecast for the Semiconductor industry in South Korea. 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 16% per year, which means it is well ahead of earnings. Declared Dividend • Feb 25
Dividend reduced to ₩810 Dividend of ₩810 is 34% lower than last year. Ex-date: 9th March 2026 Payment date: 23rd April 2026 Dividend yield will be 0.9%, which is lower than the industry average of 1.0%. Sustainability & Growth Dividend is well covered by both earnings (20% earnings payout ratio) and cash flows (19% cash payout ratio). The dividend has increased by an average of 26% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to grow by 38% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jan 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩105,800, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 19x in the Semiconductor industry in South Korea. Total returns to shareholders of 138% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩83,866 per share. Buy Or Sell Opportunity • Jan 28
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 77% to ₩104,000. The fair value is estimated to be ₩83,474, 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. Earnings per share has declined by 34%. Revenue is forecast to grow by 24% in 2 years. Earnings are forecast to grow by 54% in the next 2 years. Valuation Update With 7 Day Price Move • Jan 16
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩85,200, 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 101% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩109,384 per share. Buy Or Sell Opportunity • Dec 15
Now 22% undervalued Over the last 90 days, the stock has risen 15% to ₩65,400. The fair value is estimated to be ₩83,711, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 34%. Revenue is forecast to grow by 20% in 2 years. Earnings are forecast to grow by 44% in the next 2 years. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩69,400, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 16x in the Semiconductor industry in South Korea. Total returns to shareholders of 52% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩67,077 per share. Buy Or Sell Opportunity • Nov 07
Now 21% undervalued Over the last 90 days, the stock has risen 15% to ₩52,800. The fair value is estimated to be ₩67,164, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 14% over the last 3 years. Earnings per share has declined by 37%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Buy Or Sell Opportunity • Oct 14
Now 20% undervalued Over the last 90 days, the stock has risen 18% to ₩55,300. The fair value is estimated to be ₩69,272, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 14% over the last 3 years. Earnings per share has declined by 37%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 38% in the next 2 years. Major Estimate Revision • Oct 01
Consensus EPS estimates fall by 38%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from ₩1.31b to ₩1.36b. EPS estimate fell from ₩8,092 to ₩4,990 per share. Net income forecast to grow 14% next year vs 39% growth forecast for Semiconductor industry in South Korea. Consensus price target up from ₩53,500 to ₩62,000. Share price was steady at ₩58,300 over the past week. Announcement • Sep 24
DB HiTek CO., LTD. announced that it has received KRW 125.56764 billion in funding from Samsung Securities Co.,Ltd., Korea Investment & Securities Co., Ltd., NH Investment & Securities Co., Ltd., Shinhan Securities Co. Ltd., Mirae Asset Securities Co., Ltd., KB Securities Co., Ltd. On September 23, 2025. DB HiTek CO., LTD. announced that it has closed the transaction. Announcement • Sep 17
DB HiTek CO., LTD. announced that it expects to receive KRW 125.56764 billion in funding from Samsung Securities Co.,Ltd., Korea Investment & Securities Co., Ltd., NH Investment & Securities Co., Ltd., Shinhan Securities Co. Ltd., Mirae Asset Securities Co., Ltd., KB Securities Co., Ltd. DB HiTek CO., LTD announced a private placement to issue Series 121 Zero Coupon Unregistered Unsecured Convertible Bonds for aggregate gross proceeds of KRW 125,567,640,000 on September 15, 2025. The bonds are restricted, has a maturity date of September 23, 2030. The bonds are 100% convertible into 2,220,000 shares at a conversion price of KRW 56,562. The transaction has been approved by the board of directors and is expected to close on September 23, 2025. The transaction will include participation from Samsung Securities Co., Ltd, Lindman New Deal New Growth PEF, Korea Investment & Securities Co., Ltd and others. Valuation Update With 7 Day Price Move • Sep 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩51,900, 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 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩68,665 per share. Announcement • Sep 12
DB HiTek Begins Customer Enablement for 650V GaN HEMT Process DB HiTek announced it is in the final stages of development of its 650V E-Mode GaN HEMT (Gallium Nitride High-Electron Mobility Transistor) process, a next-generation power semiconductor platform. The company is also to offer a dedicated GaN MPW (multi-project wafer) program at the end of October. Compared with traditional silicon-based power devices, GaN-based semiconductors deliver superior performance under high-voltage, high-frequency, and high-temperature operating conditions, offering exceptional power efficiency. In particular, 650V E-Mode Ga NEMT stands out for its high-speed switching performance and robust operational stability, making it well-suited for EV charging infrastructure, power conversion systems in hyperscale data centers, and advanced 5G network equipment. Following completion of the 650V GaN HEMT process, DB HiTek plans to roll out a 200V GaN process and a 650V GaN process optimized for IC (Integrated Circuit) integration by the end of 2026. Looking ahead, the company aims to expand its GaN platform across a wider voltage spectrum, aligned with market needs and customer requirements. To support these initiatives, DB HiTek is expanding the cleanroom facilities of Fab2, located at Chungcheongbuk-do, South Korea. The expansion is expected to add capacity for approximately 35,000 8-inch wafers per month, supporting production of GaN, BCDMOS, and SiC processes. Upon completion, DB HiTek's total monthly wafer capacity will increase by 23%, from 154,000 to 190,000 wafers. Meanwhile, DB HiTek will participate in ICSCRM(The International Conference on Silicon Carbide and Related Materials) 2025, scheduled for September 15-18 at BEXCO in Busan. At this global industry forum, DB HiTek will highlight progress in SiC process development alongside its GaN and BCDMOS technologies, engaging directly with customers and industry leaders. Major Estimate Revision • Jul 11
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from ₩1.29b to ₩1.31b. EPS estimate increased from ₩5,354 to ₩6,205 per share. Net income forecast to grow 20% next year vs 14% growth forecast for Semiconductor industry in South Korea. Consensus price target of ₩53,500 unchanged from last update. Share price was steady at ₩46,050 over the past week. Price Target Changed • Jun 28
Price target increased by 8.0% to ₩53,500 Up from ₩49,550, the current price target is an average from 2 analysts. New target price is 16% above last closing price of ₩46,100. Stock is down 5.7% over the past year. The company is forecast to post earnings per share of ₩4,525 for next year compared to ₩5,520 last year. Announcement • May 01
Weebit Nano and DB HiTek to Demonstrate Chips integrating Weebit Reram at PCIM 2025 Weebit Nano Limited and DB HiTek will show the first demonstration of DB HiTek's Bipolar-CMOS-DMOS (BCD) silicon integrating Weebit's Resistive Random-Access Memory (ReRAM) non-volatile memory (NVM) technology at PCIM 2025. PCIM is Europe's largest power semiconductor exhibition, being held in Nuremberg, Germany, from May 6-8, 2025. This is the latest step in the continued collaboration between the companies as they progress towards full qualification of Weebit's embedded ReRAM module in DB HiTek's 130nm BCD process, expected later this year. This process is ideal for analog, mixed-signal and high-voltage designs in consumer, industrial, IoT, and a range of other applications. Weebit ReRAM IP provides a high-density, low-power embedded NVM for these applications that is cost effective and has proven excellent retention at high temperatures. The edge AI demonstration, running on DB HiTek chips with embedded Weebit ReRAM, shows an application of gesture recognition. It was developed in collaboration with Nanoveu's Embedded AI Systems Pte. Ltd. and will be shown in DB HiTek's booth 680 in Hall 7 at PCIM. Weebit ReRAM will be qualified in DB HiTek's BCD 130nm process and ready for production in calendar 2025. Once qualified, DB HiTek will add Weebit's memory module to its BCD 130nm Process Design Kit (PDK). DB HiTek customers can use the standard 1Mb modules in the PDK or have modules customized for their needs. Weebit ReRAM is available now to select DB HiTek customers for design prototyping. Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩36,750, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Semiconductor industry in South Korea. Total loss to shareholders of 45% over the past three years. Announcement • Apr 08
Db Hitek to Participate in Pcim 2025, Strengthening Marketing in Europe DB HiTek will participate in PCIM 2025, Europe's largest power semiconductor exhibition, held in Nuremberg, Germany, from May 6 to May 8 (local time), to expand its presence in the European market. At the exhibition, DB HiTek plans to showcase the latest technology developments in its world-best BCDMOS, Specialty CIS, and the next-generation power semiconductor SiC and GaN. Notably, the company's SiC and GaN power semiconductor processes, which DB HiTek has been actively developing as key future growth drivers, will be prominently featured at the event. In February, DB HiTek secured the basic characteristics of its 8-inch SiC wafer through full in-house processing. The company aims to improve yield and reliability throughout this year and plans to offer the process to its customers by late 2025. Additionally, DB HiTek has successfully developed an 8-inch GaN process with 650V HEMT characteristics and plans to complete reliability validation within the year. The company announced that it will launch a dedicated GaN MPW service in October, actively supporting customer product evaluations. Currently, DB HiTek is mass-producing chips for 400 companies, with cumulative shipments of 6 million 8-inch wafer for Analog and Power semiconductor. The company has also secured Specialty CIS process technologies, including X-ray sensors, Global Shutter, and SPAD, and is actively engaged in mass production with various partners. Its semiconductor applications span mobile, consumer, and industrial sectors, with a growing share of automotive chips in recent years. Announcement • Mar 25
Dongbu World Co., Ltd. agreed to acquire DB Metal Co., Ltd. from DB HiTek CO., LTD. (KOSE:A000990), DB Inc. (KOSE:A012030), Dongbu Investment Co., Ltd. and Dongbu Stock Investment Co., Ltd. KRW 64.9 billion. Dongbu World Co., Ltd. agreed to acquire DB Metal Co., Ltd. from DB HiTek CO., LTD. (KOSE:A000990), DB Inc. (KOSE:A012030), Dongbu Investment Co., Ltd. and Dongbu Stock Investment Co., Ltd. for KRW 64.9 billion on March 24, 2025. The consideration consists of 5.73 million common equity of Dongbu World Co., Ltd. to be issued for common equity of DB Metal Co., Ltd.
The expected completion of the transaction is July 1, 2025. Reported Earnings • Mar 15
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: ₩5,520 (down from ₩6,241 in FY 2023). Revenue: ₩1.13t (down 2.0% from FY 2023). Net income: ₩229.5b (down 13% from FY 2023). Profit margin: 20% (down from 23% in FY 2023). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 10%. Revenue is forecast to grow 9.6% 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 26% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. New Risk • Mar 06
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 9.7% 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: 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 (9.7% average weekly change). Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩40,550, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Semiconductor industry in South Korea. Total loss to shareholders of 39% over the past three years. Upcoming Dividend • Feb 26
Upcoming dividend of ₩1,230 per share Eligible shareholders must have bought the stock before 05 March 2025. Payment date: 18 April 2025. Payout ratio is a comfortable 10% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of South Korean dividend payers (3.9%). In line with average of industry peers (1.1%). Announcement • Feb 21
DB HiTek CO., LTD. announces Annual dividend, payable on April 18, 2025 DB HiTek CO., LTD. announced Annual dividend of KRW 1230.0000 per share payable on April 18, 2025, ex-date on March 05, 2025 and record date on March 06, 2025. Announcement • Feb 20
DB HiTek CO., LTD., Annual General Meeting, Mar 20, 2025 DB HiTek CO., LTD., Annual General Meeting, Mar 20, 2025, at 09:00 Tokyo Standard Time. Location: auditorium, 90, sudo-ro, gyeonggi-do, bucheon South Korea Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩39,100, 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 loss to shareholders of 41% over the past three years. Announcement • Dec 30
DB HiTek CO., LTD. (KOSE:A000990) announces an Equity Buyback for KRW 45,000 million worth of its shares. DB HiTek CO., LTD. (KOSE:A000990) announces a share repurchase program. Under the program, the company will repurchase up to KRW 45,000 million worth of its shares under the contract with Shinhan Investment & Securities Co., Ltd. The purpose of the program is to stabilize the stock price and to enhance the shareholders’ value. The program will be valid till June 29, 2025. As of December 29, 2024, the company had 2,775,749 common shares in treasury under the dividend capacity and 394,582 common shares in treasury under other capacities. Upcoming Dividend • Dec 20
Upcoming dividend of ₩580 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 28 April 2025. Payout ratio is a comfortable 10% and this is well supported by cash flows. Trailing yield: 1.7%. 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 • Dec 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩34,050, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Semiconductor industry in South Korea. Total loss to shareholders of 48% over the past three years. Price Target Changed • Nov 13
Price target decreased by 11% to ₩50,250 Down from ₩56,500, the current price target is an average from 4 analysts. New target price is 59% above last closing price of ₩31,550. Stock is down 42% over the past year. The company is forecast to post earnings per share of ₩5,273 for next year compared to ₩6,241 last year. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩41,350, 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 loss to shareholders of 34% over the past three years. Price Target Changed • Jul 17
Price target increased by 8.2% to ₩56,250 Up from ₩52,000, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of ₩53,700. Stock is down 12% over the past year. The company is forecast to post earnings per share of ₩4,025 for next year compared to ₩6,241 last year. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩48,400, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 18x in the Semiconductor industry in South Korea. Total loss to shareholders of 18% over the past three years. Announcement • Jun 15
DB HiTek CO., LTD.(KOSE:A000990) dropped from KOSPI 200 Index Dongbu HiTek Co., Ltd. has been removed from KOSPI 200 Index. Announcement • Mar 01
DB HiTek CO., LTD., Annual General Meeting, Mar 28, 2024 DB HiTek CO., LTD., Annual General Meeting, Mar 28, 2024, at 09:01 Korea Standard Time. Location: 5F Auditorium, Shockley-dong, 90 Sudo-ro (Dodang-dong), Wonmi-gu, Bucheon-si Gyeonggi-do South Korea Agenda: To consider approval of the 71st financial statement (including surplus appropriation statement); to consider Changes in some Articles (separation of CEO and Chairman of the board of directors); to consider Changes in some Articles (adjustment in number of directors); to consider Retirement of treasury stocks (Shareholder Proposal - Minority Shareholder Alliance); to consider appointment of inside director Lee Sang-gi; to consider appointment of the members of the audit committee Hwang Chull-sung; to consider appointment of an outside director becoming a member of the audit committee; and to consider other matters. Buy Or Sell Opportunity • Jan 26
Now 20% undervalued Over the last 90 days, the stock has risen 5.6% to ₩50,500. The fair value is estimated to be ₩63,133, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 34%. Revenue is forecast to grow by 7.4% in 2 years. Earnings are forecast to decline by 7.3% in the next 2 years. Buying Opportunity • Jan 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 3.8%. The fair value is estimated to be ₩63,510, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Earnings per share has grown by 34%. Revenue is forecast to grow by 7.4% in 2 years. Earnings is forecast to decline by 7.3% in the next 2 years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩1,300 per share at 2.2% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 29 April 2024. Payout ratio is a comfortable 20% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.0%). New Risk • Nov 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: 22% Last year net profit margin: 37% 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 Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (22% net profit margin). Major Estimate Revision • Nov 10
Consensus EPS estimates fall by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from ₩1.15b to ₩1.13b. EPS estimate also fell from ₩6,269 per share to ₩4,668 per share. Net income forecast to shrink 35% next year vs 18% growth forecast for Semiconductor industry in South Korea . Consensus price target down from ₩70,000 to ₩63,000. Share price rose 4.0% to ₩54,200 over the past week. New Risk • Sep 10
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 27% 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 (27% accrual ratio). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Major Estimate Revision • Apr 19
Consensus revenue estimates increase by 13% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from ₩1.16b to ₩1.32b. EPS estimate increased from ₩8,069 to ₩8,259 per share. Net income forecast to shrink 34% next year vs 14% growth forecast for Semiconductor industry in South Korea . Consensus price target of ₩62,650 unchanged from last update. Share price fell 10% to ₩68,100 over the past week. Reported Earnings • Mar 26
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: ₩12,858 (up from ₩7,292 in FY 2021). Revenue: ₩1.68t (up 38% from FY 2021). Net income: ₩558.8b (up 76% from FY 2021). Profit margin: 33% (up from 26% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) also missed analyst estimates by 8.9%. Revenue is forecast to stay flat during the next 2 years compared to a 5.5% growth forecast for the Semiconductor industry in South Korea. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩56,600, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Semiconductor industry in South Korea. Total returns to shareholders of 182% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩74,045 per share. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩53,000, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 8x in the Semiconductor industry in South Korea. Total returns to shareholders of 142% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩74,667 per share. Announcement • Jan 31
DB HiTek Expands High Value-Added Specialized Sensor DB HiTek starts to expand high value-added specialized image sensor business with the foundry process technology specialized for global shutter and SPAD (Single Photon Avalanche Diode) which is in attention in various industries including automobile, robot and others. Based on the secured process technology, it plans to improve the profitability by expanding into new high growth areas such as industrial machine vision, autonomous car, and AR (Augmented Reality). Global shutter is a sensor which captures images of fast-moving subjects without distortion, and it is actively applied to machine vision (a technology that enables a computing device to inspect, evaluate and identify still or moving images) that recently focuses attention as an 'eye of smart factory', plus, its applied scope is spreading rapidly to robots, drones and automobiles. The specialty of DB HiTek's global shutter is that it has the advanced technology of 99.997% (less than 1/10,000 for noise occurrence) of GSE (Global Shutter Efficiency) by preventing optical signal distortion by applying the light shield and light guide technologies. It can realize the pixel size of 2.8 micrometers in minimum. Furthermore, SPAD is a supersensitive 3D image sensor which detects weak light signals at the photon (particles of light) level, and is a core part installed in the LiDAR (Light Detection And Ranging) of autonomous cars based on its advantage of high precision and long distance measurement availability. Recently, it is applied rapidly by supporting AR functions on premium smartphones, and its role would be widely expanded to the new generation of application areas including robots and drones in the future. LiDAR, also known as ToF (Time of Flight) sensor, is a high precision part which shoots the laser (light) to grasp a distance between objects and forms by measuring the returning time of the laser after hitting the object. DB HiTek's SPAD process had secured the function to detect photon in probabilities of 3.2% from FSI (Front Side Illumination) and 7% from BSI (Back Side Illumination) based on the wavelength of 940nm. In addition, it plans to have the best competitiveness in the industry by raising the photon detection probability to 15% with the process of BDTI (Backside Deep Trench Isolation, minimizes light loss and realizes improvements in optical performance through the formation of insulation part between pixels) in the future. Upcoming Dividend • Dec 21
Upcoming dividend of ₩450 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 28 April 2023. Payout ratio is a comfortable 3.2% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (1.8%). Price Target Changed • Nov 16
Price target decreased to ₩85,833 Down from ₩99,600, the current price target is an average from 6 analysts. New target price is 75% above last closing price of ₩49,150. Stock is down 27% over the past year. The company is forecast to post earnings per share of ₩14,008 for next year compared to ₩7,275 last year. Board Change • Nov 16
Insufficient new directors 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. 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: Insufficient board refreshment. Price Target Changed • Nov 05
Price target decreased to ₩85,833 Down from ₩99,600, the current price target is an average from 6 analysts. New target price is 100% above last closing price of ₩42,950. Stock is down 27% over the past year. The company is forecast to post earnings per share of ₩14,008 for next year compared to ₩7,275 last year. Buying Opportunity • Aug 10
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 39%. The fair value is estimated to be ₩53,284, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 45%. Revenue is forecast to grow by 31% in 2 years. Earnings is forecast to grow by 37% in the next 2 years. Buying Opportunity • Jul 12
Now 25% undervalued after recent price drop Over the last 90 days, the stock is down 43%. The fair value is estimated to be ₩54,314, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 45%. Revenue is forecast to grow by 31% in 2 years. Earnings is forecast to grow by 37% in the next 2 years. Buying Opportunity • Jun 22
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 33%. The fair value is estimated to be ₩67,839, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has grown by 45%. Revenue is forecast to grow by 38% in 2 years. Earnings is forecast to grow by 53% in the next 2 years. Major Estimate Revision • May 25
Consensus EPS estimates increase by 28% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from ₩1.59b to ₩1.75b. EPS estimate increased from ₩11,994 to ₩15,345 per share. Net income forecast to grow 54% next year vs 31% growth forecast for Semiconductor industry in South Korea. Consensus price target down from ₩104,750 to ₩102,250. Share price fell 4.6% to ₩70,200 over the past week. Price Target Changed • Apr 27
Price target increased to ₩104,750 Up from ₩95,200, the current price target is an average from 4 analysts. New target price is 55% above last closing price of ₩67,700. Stock is up 20% over the past year. The company is forecast to post earnings per share of ₩11,994 for next year compared to ₩7,292 last year. Board Change • Apr 27
Insufficient new directors 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. 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: Insufficient board refreshment. Price Target Changed • Apr 09
Price target increased to ₩100,750 Up from ₩91,800, the current price target is an average from 4 analysts. New target price is 45% above last closing price of ₩69,700. Stock is up 25% over the past year. The company is forecast to post earnings per share of ₩11,443 for next year compared to ₩7,292 last year. Price Target Changed • Jan 13
Price target increased to ₩89,800 Up from ₩83,000, the current price target is an average from 5 analysts. New target price is 9.2% above last closing price of ₩82,200. Stock is up 38% over the past year. The company is forecast to post earnings per share of ₩6,367 for next year compared to ₩3,822 last year. 
