Valuation Update With 7 Day Price Move • May 13
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩2,285, the stock trades at a trailing P/E ratio of 8.9x. Average trailing P/E is 19x in the IT industry in South Korea. Total returns to shareholders of 12% over the past three years. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ₩2,035, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 19x in the IT industry in South Korea. Total loss to shareholders of 10% over the past three years. New Risk • Apr 03
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: 7.6% 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: Major Risk Debt is not well covered by operating cash flow (4.5% operating cash flow to total debt). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.6% net profit margin). Announcement • Mar 17
DB Inc., Annual General Meeting, Mar 31, 2026 DB Inc., Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 23, samseong-ro 96-gil, gangnam-gu, seoul South Korea Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to ₩2,200, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 18x in the IT industry in South Korea. Total returns to shareholders of 57% over the past three years. Valuation Update With 7 Day Price Move • Sep 05
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩1,630, the stock trades at a trailing P/E ratio of 2.9x. Average trailing P/E is 18x in the IT industry in South Korea. Total returns to shareholders of 112% over the past three 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 25
Full year 2024 earnings released: EPS: ₩486 (vs ₩106 in FY 2023) Full year 2024 results: EPS: ₩486 (up from ₩106 in FY 2023). Revenue: ₩587.4b (up 28% from FY 2023). Net income: ₩92.3b (up 355% from FY 2023). Profit margin: 16% (up from 4.4% in FY 2023). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • Mar 14
DB Inc., Annual General Meeting, Mar 28, 2025 DB Inc., Annual General Meeting, Mar 28, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 23, samseong-ro 96-gil, gangnam-gu, seoul South Korea Valuation Update With 7 Day Price Move • Dec 27
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩1,299, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 15x in the IT industry in South Korea. Total returns to shareholders of 37% over the past three years. New Risk • Nov 23
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 32% 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 Risks Debt is not well covered by operating cash flow (3.4% operating cash flow to total debt). High level of non-cash earnings (32% accrual ratio). Valuation Update With 7 Day Price Move • Sep 02
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩1,287, the stock trades at a trailing P/E ratio of 14x. Average trailing P/E is 15x in the IT industry in South Korea. Total returns to shareholders of 18% over the past three years. New Risk • Aug 24
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 7.5% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. This is currently the only risk that has been identified for the company. Announcement • Jul 05
DB HiTek CO., LTD. (KOSE:A000990) agreed to acquire unknown minority stake in Dongbu World Co., Ltd. from DB Inc. (KOSE:A012030) for KRW 49.4 billion. DB HiTek CO., LTD. (KOSE:A000990) agreed to acquire unknown minority stake in Dongbu World Co., Ltd. from DB Inc. (KOSE:A012030) for KRW 49.4 billion on July 3, 2024. The expected completion of the transaction is July 3, 2024. Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩1,621, the stock trades at a trailing P/E ratio of 35.2x. Average trailing P/E is 16x in the IT industry in South Korea. Total returns to shareholders of 54% over the past three years. New Risk • May 24
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 55% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (55% net debt to equity). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.9% net profit margin). Reported Earnings • Mar 16
Full year 2023 earnings released: EPS: ₩106 (vs ₩30.00 in FY 2022) Full year 2023 results: EPS: ₩106 (up from ₩30.00 in FY 2022). Revenue: ₩458.6b (up 14% from FY 2022). Net income: ₩20.3b (up 255% from FY 2022). Profit margin: 4.4% (up from 1.4% in FY 2022). Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 22% per year. Announcement • Mar 14
DB Inc., Annual General Meeting, Mar 28, 2024 DB Inc., Annual General Meeting, Mar 28, 2024, at 09:01 Korea Standard Time. Location: B1 Earth Hall, DB Samseongdong Bldg, 23, Samseong-ro 96-gil, Gangnam-gu South Korea Agenda: To consider Approval of the 46th Fiscal Year Financial Statements; to consider Approval of partial amendments to the Articles of Incorporation ; to consider appointment of Outside Director as an Audit Committee Member; and to consider other matters. Valuation Update With 7 Day Price Move • Jun 02
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to ₩2,270, the stock trades at a trailing P/E ratio of 29.3x. Average trailing P/E is 19x in the IT industry in South Korea. Total returns to shareholders of 201% over the past three years. Buying Opportunity • May 18
Now 24% undervalued Over the last 90 days, the stock is up 53%. The fair value is estimated to be ₩2,497, 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 35%. Buying Opportunity • Apr 25
Now 22% undervalued Over the last 90 days, the stock is up 120%. The fair value is estimated to be ₩2,544, 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 35%. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩2,375, the stock trades at a trailing P/E ratio of 79.4x. Average trailing P/E is 28x in the IT industry in South Korea. Total returns to shareholders of 235% over the past three years. Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to ₩1,685, the stock trades at a trailing P/E ratio of 56.3x. Average trailing P/E is 28x in the IT industry in South Korea. Total returns to shareholders of 196% over the past three years. Reported Earnings • Mar 24
Full year 2022 earnings released: EPS: ₩30.00 (vs ₩114 in FY 2021) Full year 2022 results: EPS: ₩30.00 (down from ₩114 in FY 2021). Revenue: ₩401.3b (up 23% from FY 2021). Net income: ₩5.71b (down 74% from FY 2021). Profit margin: 1.4% (down from 6.6% in FY 2021). Over the last 3 years on average, earnings per share has increased by 35% per year whereas the company’s share price has increased by 34% per year. Valuation Update With 7 Day Price Move • Feb 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩1,147, the stock trades at a trailing P/E ratio of 10x. Average trailing P/E is 27x in the IT industry in South Korea. Total returns to shareholders of 44% over the past three years. 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. 3 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. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ₩707, the stock trades at a trailing P/E ratio of 6.2x. Average trailing P/E is 14x in the IT industry in South Korea. Total loss to shareholders of 23% over the past three years. 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. 3 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. Reported Earnings • Mar 28
Full year 2021 earnings released: EPS: ₩114 (vs ₩32.99 in FY 2020) Full year 2021 results: EPS: ₩114 (up from ₩32.99 in FY 2020). Revenue: ₩326.9b (up 20% from FY 2020). Net income: ₩21.7b (up 246% from FY 2020). Profit margin: 6.6% (up from 2.3% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 17
Third quarter 2021 earnings released: EPS ₩25.00 (vs ₩12.00 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ₩84.5b (up 34% from 3Q 2020). Net income: ₩4.80b (up 118% from 3Q 2020). Profit margin: 5.7% (up from 3.5% in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment improved over the past week After last week's 23% share price gain to ₩1,295, the stock trades at a trailing P/E ratio of 26.3x. Average trailing P/E is 24x in the IT industry in South Korea. Total returns to shareholders of 42% over the past three years. Reported Earnings • May 20
First quarter 2021 earnings released: EPS ₩51.00 (vs ₩35.00 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ₩67.9b (up 4.8% from 1Q 2020). Net income: ₩9.80b (up 47% from 1Q 2020). Profit margin: 14% (up from 10% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 21
Full year 2020 earnings released: EPS ₩32.99 (vs ₩23.29 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩272.4b (up 14% from FY 2019). Net income: ₩6.27b (up 41% from FY 2019). Profit margin: 2.3% (up from 1.9% in FY 2019). Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Mar 11
DB Inc., Annual General Meeting, Mar 30, 2021 DB Inc., Annual General Meeting, Mar 30, 2021, at 09:00 Korea Standard Time. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improved over the past week After last week's 16% share price gain to ₩980, the stock is trading at a trailing P/E ratio of 20.6x, up from the previous P/E ratio of 17.7x. This compares to an average P/E of 21x in the IT industry in South Korea. Total returns to shareholders over the past three years are 36%. Is New 90 Day High Low • Jan 22
New 90-day high: ₩871 The company is up 24% from its price of ₩704 on 23 October 2020. The South Korean market is up 32% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is up 22% over the same period. Is New 90 Day High Low • Dec 24
New 90-day high: ₩760 The company is up 13% from its price of ₩673 on 25 September 2020. The South Korean market is up 21% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is up 11% over the same period. Is New 90 Day High Low • Nov 30
New 90-day high: ₩735 The company is up 5.0% from its price of ₩703 on 01 September 2020. The South Korean market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 11% over the same period. Reported Earnings • Nov 15
Third quarter 2020 earnings released: EPS ₩12.00 The company reported a soft third quarter result with weaker earnings and profit margins, although revenues were improved. Third quarter 2020 results: Revenue: ₩63.2b (up 8.6% from 3Q 2019). Net income: ₩2.21b (down 29% from 3Q 2019). Profit margin: 3.5% (down from 5.3% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Sep 24
New 90-day low: ₩668 The company is down 5.0% from its price of ₩700 on 26 June 2020. The South Korean market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is up 4.0% over the same period.