New Risk • Mar 30
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: 1.1% Last year net profit margin: 2.1% 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 Risks Interest payments are not well covered by earnings (1.0x net interest cover). High level of non-cash earnings (21% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (1.1% net profit margin). Market cap is less than US$100m (₩76.5b market cap, or US$50.6m). New Risk • Mar 04
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: 1.0% 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 Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩70.5b market cap, or US$48.2m). Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩4,820, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 17x in the Electronic industry in South Korea. Total loss to shareholders of 22% over the past three years. Announcement • Mar 04
SEKONIX Co., Ltd., Annual General Meeting, Mar 31, 2026 SEKONIX Co., Ltd., Annual General Meeting, Mar 31, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 28, pyeonghwa-ro 2862beon-gil, gyeonggi-do, dongducheon South Korea Valuation Update With 7 Day Price Move • Jan 06
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to ₩6,800, the stock trades at a trailing P/E ratio of 11.6x. Average trailing P/E is 17x in the Electronic industry in South Korea. Total returns to shareholders of 28% over the past three years. New Risk • Nov 20
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 13% 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. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (13% operating cash flow to total debt). Minor Risk Market cap is less than US$100m (₩74.6b market cap, or US$50.8m). Announcement • Mar 01
SEKONIX Co., Ltd., Annual General Meeting, Mar 28, 2025 SEKONIX Co., Ltd., Annual General Meeting, Mar 28, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 28, pyeonghwa-ro 2862beon-gil, gyeonggi-do, dongducheon South Korea New Risk • Feb 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 10% 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 High level of debt (48% net debt to equity). 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 (10% average weekly change). Market cap is less than US$100m (₩112.8b market cap, or US$78.6m). Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩7,400, the stock trades at a trailing P/E ratio of 9.4x. Average trailing P/E is 15x in the Electronic industry in South Korea. Total loss to shareholders of 25% over the past three years. New Risk • Dec 09
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 (₩72.8b market cap, or US$51.2m). Reported Earnings • Nov 20
Third quarter 2024 earnings released: EPS: ₩126 (vs ₩84.00 in 3Q 2023) Third quarter 2024 results: EPS: ₩126 (up from ₩84.00 in 3Q 2023). Revenue: ₩114.2b (down 14% from 3Q 2023). Net income: ₩1.85b (up 51% from 3Q 2023). Profit margin: 1.6% (up from 0.9% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Electronic industry in South Korea. Over the last 3 years on average, earnings per share has increased by 94% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. 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 (₩74.9b market cap, or US$56.9m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩4,970, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 13x in the Electronic industry in South Korea. Total loss to shareholders of 33% over the past year. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to ₩8,270, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 12x in the Electronic industry in South Korea. Total returns to shareholders of 30% over the past three years. New Risk • Mar 31
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.4% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. 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 Interest payments are not well covered by earnings (2.9x net interest cover). 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 (₩106.8b market cap, or US$79.3m). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩84.00 (vs ₩178 loss in 3Q 2022) Third quarter 2023 results: EPS: ₩84.00 (up from ₩178 loss in 3Q 2022). Revenue: ₩133.2b (up 17% from 3Q 2022). Net income: ₩1.23b (up ₩3.83b from 3Q 2022). Profit margin: 0.9% (up from net loss in 3Q 2022). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Electronic industry in South Korea. Over the last 3 years on average, earnings per share has increased by 132% 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 • Oct 19
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩6,340, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Electronic industry in South Korea. Total returns to shareholders of 7.2% over the past three years. Reported Earnings • Mar 29
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: ₩148 loss per share (down from ₩289 profit in FY 2021). Revenue: ₩479.6b (up 8.3% from FY 2021). Net loss: ₩2.17b (down 152% from profit in FY 2021). Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 92%. Revenue is forecast to grow 6.4% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Electronic industry in South Korea. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. 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. 11 experienced directors. 1 highly experienced director. 2 independent directors (10 non-independent directors). Executive Director Hui-Jung Lee was the last director to join the board, commencing their role in 2004. 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 • May 19
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: ₩126 (down from ₩412 in 1Q 2021). Revenue: ₩120.1b (up 7.6% from 1Q 2021). Net income: ₩1.85b (down 68% from 1Q 2021). Profit margin: 1.5% (down from 5.2% in 1Q 2021). Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) missed analyst estimates by 89%. Over the next year, revenue is forecast to grow 12%, compared to a 43% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. 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. 11 experienced directors. 1 highly experienced director. 2 independent directors (10 non-independent directors). Executive Director Hui-Jung Lee was the last director to join the board, commencing their role in 2004. 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 • Nov 16
Third quarter 2021 earnings released: EPS ₩122 (vs ₩272 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ₩100.5b (down 9.6% from 3Q 2020). Net income: ₩1.79b (down 44% from 3Q 2020). Profit margin: 1.8% (down from 2.8% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Board Change • Sep 15
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. 11 experienced directors. 1 highly experienced director. 2 independent directors (10 non-independent directors). Executive Director Hui-Jung Lee was the last director to join the board, commencing their role in 2004. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment.