Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩13,730, the stock trades at a trailing P/E ratio of 6.4x. Average trailing P/E is 11x in the Tech industry in South Korea. Total returns to shareholders of 73% over the past three years. Reported Earnings • Mar 21
Full year 2025 earnings released: EPS: ₩2,221 (vs ₩2,087 in FY 2024) Full year 2025 results: EPS: ₩2,221 (up from ₩2,087 in FY 2024). Revenue: ₩396.8b (up 29% from FY 2024). Net income: ₩28.3b (up 3.8% from FY 2024). Profit margin: 7.1% (down from 8.9% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Mar 13
Kortek Corporation, Annual General Meeting, Mar 31, 2026 Kortek Corporation, Annual General Meeting, Mar 31, 2026, at 09:01 Tokyo Standard Time. Location: auditorium, 26, venture-ro 24beon-gil, yeonsu-gu, incheon South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩250 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 13 April 2026. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.4%). Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: ₩447 (vs ₩181 in 3Q 2024) Third quarter 2025 results: EPS: ₩447 (up from ₩181 in 3Q 2024). Revenue: ₩105.6b (up 24% from 3Q 2024). Net income: ₩5.55b (up 138% from 3Q 2024). Profit margin: 5.3% (up from 2.7% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Declared Dividend • Nov 08
Dividend of ₩250 announced Dividend of ₩250 is the same as last year. Ex-date: 29th December 2025 Payment date: 13th April 2026 Dividend yield will be 2.9%, which is higher than the industry average of 1.9%. Sustainability & Growth Dividend is covered by earnings (13% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 66 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 11% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Nov 07
Kortek Corporation announces Annual dividend, payable on April 13, 2026 Kortek Corporation announced Annual dividend of KRW 250.0000 per share payable on April 13, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. New Risk • Aug 30
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended September 2013. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported September 2013 fiscal period end). High level of non-cash earnings (32% 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 (₩120.5b market cap, or US$86.9m). Reported Earnings • Mar 14
Full year 2024 earnings released: EPS: ₩2,087 (vs ₩566 in FY 2023) Full year 2024 results: EPS: ₩2,087 (up from ₩566 in FY 2023). Revenue: ₩308.0b (down 5.8% from FY 2023). Net income: ₩27.3b (up 244% from FY 2023). Profit margin: 8.9% (up from 2.4% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Feb 26
Kortek Corporation, Annual General Meeting, Mar 25, 2025 Kortek Corporation, Annual General Meeting, Mar 25, 2025, at 09:00 Tokyo Standard Time. Location: auditorium, 26, venture-ro 24beon-gil, yeonsu-gu, incheon South Korea 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 22% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of South Korean dividend payers (3.9%). In line with average of industry peers (2.7%). Reported Earnings • Nov 20
Third quarter 2024 earnings released: EPS: ₩181 (vs ₩74.00 in 3Q 2023) Third quarter 2024 results: EPS: ₩181 (up from ₩74.00 in 3Q 2023). Revenue: ₩85.3b (up 20% from 3Q 2023). Net income: ₩2.33b (up 129% from 3Q 2023). Profit margin: 2.7% (up from 1.4% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Declared Dividend • Nov 16
Dividend of ₩200 announced Shareholders will receive a dividend of ₩200. Ex-date: 27th December 2024 Payment date: 14th April 2025 Dividend yield will be 2.7%, which is higher than the industry average of 1.9%. Sustainability & Growth Dividend is well covered by both earnings (25% earnings payout ratio) and cash flows (4% cash payout ratio). The dividend has decreased over the past 56 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 73% to shift the payout ratio to a potentially unsustainable range, which is more than the 19% EPS decline seen over the last 5 years. New Risk • Sep 17
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. 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 (₩103.7b market cap, or US$78.8m). Reported Earnings • Mar 15
Full year 2023 earnings released: EPS: ₩566 (vs ₩1,977 in FY 2022) Full year 2023 results: EPS: ₩566 (down from ₩1,977 in FY 2022). Revenue: ₩327.1b (down 24% from FY 2022). Net income: ₩7.93b (down 72% from FY 2022). Profit margin: 2.4% (down from 6.6% in FY 2022). The decrease in margin was driven by lower revenue. 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 11% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩250 per share at 3.7% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 08 April 2024. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 3.7%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.0%). New Risk • Nov 19
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: 2.3% Last year net profit margin: 4.9% 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 Earnings have declined by 19% per year over the past 5 years. 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 (2.3% net profit margin). Market cap is less than US$100m (₩87.2b market cap, or US$67.3m). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩74.00 (vs ₩1,255 in 3Q 2022) Third quarter 2023 results: EPS: ₩74.00 (down from ₩1,255 in 3Q 2022). Revenue: ₩70.9b (down 38% from 3Q 2022). Net income: ₩1.02b (down 94% from 3Q 2022). Profit margin: 1.4% (down from 16% 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 89% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: ₩1,977 (vs ₩941 loss in FY 2021) Full year 2022 results: EPS: ₩1,977 (up from ₩941 loss in FY 2021). Revenue: ₩428.6b (up 101% from FY 2021). Net income: ₩28.2b (up ₩41.7b from FY 2021). Profit margin: 6.6% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. 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. 7 experienced directors. No highly experienced directors. 2 independent directors (5 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. 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. 7 experienced directors. No highly experienced directors. 2 independent directors (5 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. Reported Earnings • Mar 17
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: ₩941 loss per share (down from ₩589 loss in FY 2020). Revenue: ₩212.9b (up 14% from FY 2020). Net loss: ₩13.4b (loss widened 58% from FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 95 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Dec 22
Upcoming dividend of ₩250 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 14 April 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.6%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.8%). Is New 90 Day High Low • Mar 16
New 90-day high: ₩10,200 The company is up 14% from a price of ₩8,930 on 16 December 2020. Outperformed the South Korean market which is up 9.0% over the last 90 days. Exceeded the Tech industry, which is up 11% over the same period. Reported Earnings • Mar 14
Full year 2020 earnings released: ₩589 loss per share (vs ₩2,069 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: ₩186.5b (down 35% from FY 2019). Net loss: ₩8.51b (down 128% from profit in FY 2019). Announcement • Feb 25
Kortek Corporation, Annual General Meeting, Mar 25, 2021 Kortek Corporation, Annual General Meeting, Mar 25, 2021, at 09:00 Korea Standard Time. Is New 90 Day High Low • Jan 14
New 90-day high: ₩9,500 The company is up 17% from its price of ₩8,130 on 16 October 2020. The South Korean market is up 31% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Tech industry, which is up 49% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩400 Per Share Will be paid on the 13th of April to those who are registered shareholders by the 29th of December. The trailing yield of 4.5% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (1.9%). Valuation Update With 7 Day Price Move • Nov 12
Market bids up stock over the past week After last week's 15% share price gain to ₩9,290, the stock is trading at a trailing P/E ratio of 8.2x, up from the previous P/E ratio of 7.1x. This compares to an average P/E of 17x in the Tech industry in South Korea. Total return to shareholders over the past three years is a loss of 39%. Is New 90 Day High Low • Nov 12
New 90-day high: ₩9,290 The company is up 2.0% from its price of ₩9,100 on 14 August 2020. The South Korean market is also up 2.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Tech industry, which is up 4.0% over the same period. Is New 90 Day High Low • Sep 24
New 90-day low: ₩8,060 The company is down 10.0% from its price of ₩9,000 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 Tech industry, which is up 13% over the same period.