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: 8.1% Last year net profit margin: 17% 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 (2.6x net interest cover). Share price has been highly volatile over the past 3 months (16% average weekly change). Minor Risk Profit margins are more than 30% lower than last year (8.1% net profit margin). Announcement • Mar 06
Daejoo Electronic Materials Co., Ltd., Annual General Meeting, Mar 26, 2026 Daejoo Electronic Materials Co., Ltd., Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 148, seohaean-ro, gyeonggi-do, siheung South Korea Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩99,700, the stock trades at a forward P/E ratio of 61x. Average forward P/E is 19x in the Electronic industry in South Korea. Total returns to shareholders of 4.9% over the past three years. Price Target Changed • Feb 11
Price target increased by 9.9% to ₩107,667 Up from ₩98,000, the current price target is an average from 3 analysts. New target price is 17% above last closing price of ₩92,400. Stock is down 8.8% over the past year. The company is forecast to post earnings per share of ₩1,393 for next year compared to ₩2,477 last year. New Risk • Feb 09
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: Major Risks Debt is not well covered by operating cash flow (5.2% operating cash flow to total debt). Earnings are forecast to decline by an average of 13% per year for the foreseeable future. Minor Risk Share price has been volatile over the past 3 months (10% average weekly change). Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩91,100, the stock trades at a forward P/E ratio of 60x. Average forward P/E is 16x in the Electronic industry in South Korea. Total loss to shareholders of 4.9% over the past three years. Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩70,500, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 15x in the Electronic industry in South Korea. Total loss to shareholders of 16% over the past three years. Price Target Changed • Jan 13
Price target decreased by 11% to ₩98,000 Down from ₩109,500, the current price target is an average from 3 analysts. New target price is 59% above last closing price of ₩61,800. Stock is down 35% over the past year. The company is forecast to post earnings per share of ₩1,393 for next year compared to ₩2,477 last year. Major Estimate Revision • Nov 11
Consensus EPS estimates fall by 15% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from ₩1,202 to ₩1,024 per share. Revenue forecast steady at ₩252.2m. Net income forecast to shrink 33% next year vs 38% growth forecast for Electronic industry in South Korea . Consensus price target down from ₩109,500 to ₩100,750. Share price fell 4.7% to ₩74,700 over the past week. Price Target Changed • Nov 10
Price target decreased by 9.0% to ₩100,750 Down from ₩110,750, the current price target is an average from 4 analysts. New target price is 33% above last closing price of ₩75,900. Stock is down 17% over the past year. The company is forecast to post earnings per share of ₩1,024 for next year compared to ₩2,477 last year. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩75,300, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 14x in the Electronic industry in South Korea. Total loss to shareholders of 14% over the past three years. Major Estimate Revision • Aug 19
Consensus EPS estimates fall by 31% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ₩262.8m to ₩250.1m. EPS estimate also fell from ₩1,458 per share to ₩1,007 per share. Net income forecast to shrink 46% next year vs 12% growth forecast for Electronic industry in South Korea . Consensus price target broadly unchanged at ₩109,500. Share price fell 5.4% to ₩72,500 over the past week. Price Target Changed • May 17
Price target decreased by 9.5% to ₩115,333 Down from ₩127,500, the current price target is an average from 6 analysts. New target price is 55% above last closing price of ₩74,500. Stock is down 26% over the past year. The company is forecast to post earnings per share of ₩1,770 for next year compared to ₩2,477 last year. Valuation Update With 7 Day Price Move • Mar 26
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩90,300, the stock trades at a forward P/E ratio of 46x. Average forward P/E is 10x in the Electronic industry in South Korea. Total loss to shareholders of 3.5% over the past three years. Reported Earnings • Mar 22
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: ₩2,477 (up from ₩47.00 in FY 2023). Revenue: ₩219.3b (up 19% from FY 2023). Net income: ₩36.9b (up ₩36.2b from FY 2023). Profit margin: 17% (up from 0.4% in FY 2023). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 64%. Revenue is forecast to grow 30% p.a. on average during the next 2 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 1% per year whereas the company’s share price has increased by 3% per year. Announcement • Mar 08
Daejoo Electronic Materials Co., Ltd., Annual General Meeting, Mar 26, 2025 Daejoo Electronic Materials Co., Ltd., Annual General Meeting, Mar 26, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 148, seohaean-ro, gyeonggi-do, siheung South Korea New Risk • Jan 14
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: Major Risks Debt is not well covered by operating cash flow (6.3% operating cash flow to total debt). High level of non-cash earnings (33% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (10% average weekly change). Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩95,000, the stock trades at a forward P/E ratio of 52x. Average forward P/E is 9x in the Electronic industry in South Korea. Total loss to shareholders of 3.3% over the past three years. Buy Or Sell Opportunity • Dec 03
Now 24% overvalued Over the last 90 days, the stock has fallen 11% to ₩92,400. The fair value is estimated to be ₩74,780, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 98% in 2 years. Earnings are forecast to grow by 129% in the next 2 years. Price Target Changed • Nov 20
Price target decreased by 12% to ₩131,400 Down from ₩149,000, the current price target is an average from 5 analysts. New target price is 55% above last closing price of ₩85,000. Stock is up 6.3% over the past year. The company is forecast to post earnings per share of ₩1,379 for next year compared to ₩47.10 last year. Reported Earnings • Nov 15
Third quarter 2024 earnings released: EPS: ₩306 (vs ₩6.00 in 3Q 2023) Third quarter 2024 results: EPS: ₩306 (up from ₩6.00 in 3Q 2023). Revenue: ₩55.8b (up 3.6% from 3Q 2023). Net income: ₩4.59b (up ₩4.49b from 3Q 2023). Profit margin: 8.2% (up from 0.2% in 3Q 2023). The increase in margin was primarily driven by lower expenses. Revenue is forecast to grow 42% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Electronic industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Nov 15
Consensus revenue estimates decrease by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from ₩240.1m to ₩216.0m. EPS estimate unchanged at ₩1,379 per share. Net income forecast to grow 86% next year vs 47% growth forecast for Electronic industry in South Korea. Consensus price target down from ₩149,000 to ₩141,400. Share price fell 11% to ₩82,600 over the past week. Price Target Changed • Nov 14
Price target decreased by 7.4% to ₩141,400 Down from ₩152,750, the current price target is an average from 5 analysts. New target price is 70% above last closing price of ₩83,200. Stock is up 4.0% over the past year. The company is forecast to post earnings per share of ₩1,379 for next year compared to ₩47.10 last year. Buy Or Sell Opportunity • Oct 07
Now 23% overvalued Over the last 90 days, the stock has fallen 10% to ₩123,000. The fair value is estimated to be ₩100,026, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 139% in 2 years. Earnings are forecast to grow by 219% in the next 2 years. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: ₩443 (vs ₩55.00 in 2Q 2023) Second quarter 2024 results: EPS: ₩443 (up from ₩55.00 in 2Q 2023). Revenue: ₩58.3b (up 27% from 2Q 2023). Net income: ₩6.56b (up ₩5.74b from 2Q 2023). Profit margin: 11% (up from 1.8% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 42% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Electronic industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Major Estimate Revision • Aug 15
Consensus EPS estimates increase by 14%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from ₩253.1m to ₩247.0m. EPS estimate rose from ₩1,306 to ₩1,483. Net income forecast to grow 236% next year vs 38% growth forecast for Electronic industry in South Korea. Consensus price target up from ₩128,000 to ₩152,750. Share price rose 24% to ₩126,200 over the past week. New Risk • Jul 22
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South Korean stocks, typically moving 11% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (41% accrual ratio). Price Target Changed • Jun 27
Price target increased by 11% to ₩128,000 Up from ₩115,250, the current price target is an average from 3 analysts. New target price is 16% below last closing price of ₩151,600. Stock is up 61% over the past year. The company is forecast to post earnings per share of ₩1,306 for next year compared to ₩47.10 last year. New Risk • May 30
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 8.3% 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: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). High level of non-cash earnings (41% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (8.3% average weekly change). Upcoming Dividend • Dec 20
Upcoming dividend of ₩100.00 per share at 0.1% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 15 April 2024. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.1%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (0.9%). Announcement • Nov 22
Daejoo Electronic Materials Co., Ltd. announced that it has received KRW 40 billion in funding from DB Financial Investment Co., Ltd. and another investor On November 21, 2023, Daejoo Electronic Materials Co., Ltd. closed the transaction. Price Target Changed • Nov 15
Price target decreased by 7.3% to ₩111,250 Down from ₩120,000, the current price target is an average from 4 analysts. New target price is 39% above last closing price of ₩79,900. Stock is down 15% over the past year. The company is forecast to post earnings per share of ₩134 for next year compared to ₩67.34 last year. Price Target Changed • May 23
Price target decreased by 12% to ₩113,333 Down from ₩128,333, the current price target is an average from 3 analysts. New target price is 24% above last closing price of ₩91,300. Stock is down 4.7% over the past year. The company posted earnings per share of ₩67.34 last year. Reported Earnings • May 20
First quarter 2023 earnings released: ₩82.00 loss per share (vs ₩150 profit in 1Q 2022) First quarter 2023 results: ₩82.00 loss per share (down from ₩150 profit in 1Q 2022). Revenue: ₩37.5b (down 2.1% from 1Q 2022). Net loss: ₩1.22b (down 155% from profit in 1Q 2022). Revenue is forecast to grow 60% 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 23% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩67.00 (vs ₩1,540 in FY 2021) Full year 2022 results: EPS: ₩67.00 (down from ₩1,540 in FY 2021). Revenue: ₩174.1b (down 12% from FY 2021). Net income: ₩998.6m (down 96% from FY 2021). Profit margin: 0.6% (down from 12% in FY 2021). Revenue is forecast to grow 43% p.a. on average during the next 3 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 56% per year but the company’s share price has increased by 98% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 17 April 2023. Payout ratio is a comfortable 8.1% but the company is not cash flow positive. Trailing yield: 0.1%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (1.0%). Reported Earnings • Nov 17
Third quarter 2022 earnings released: EPS: ₩225 (vs ₩298 in 3Q 2021) Third quarter 2022 results: EPS: ₩225 (down from ₩298 in 3Q 2021). Revenue: ₩40.2b (down 24% from 3Q 2021). Net income: ₩3.33b (down 25% from 3Q 2021). Profit margin: 8.3% (down from 8.4% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 45% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Electronic industry in South Korea. Over the last 3 years on average, earnings per share has increased by 83% per year and the company’s share price has also increased by 83% per year. 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. 6 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Chairman Moo-Hyun Lim was the last director to join the board, commencing their role in 1981. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Aug 30
Investor sentiment improved over the past week After last week's 18% share price gain to ₩98,000, the stock trades at a trailing P/E ratio of 75.2x. Average forward P/E is 9x in the Electronic industry in South Korea. Total returns to shareholders of 357% over the past three years. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩67,500, the stock trades at a trailing P/E ratio of 49.8x. Average forward P/E is 9x in the Electronic industry in South Korea. Total returns to shareholders of 345% over the past three years. Announcement • May 20
Daejoo Electronic Materials Co., Ltd. (KOSDAQ:A078600) announces an Equity Buyback for KRW 10,000 million worth of its shares. Daejoo Electronic Materials Co., Ltd. (KOSDAQ:A078600) announces a share repurchase program. Under the program, the company will repurchase up to KRW 10,000 million worth of its shares according to the contract with DAISHIN Securities Co., Ltd. The purpose of the program is stock price stability and shareholder value enhancement. The program will expire on November 19, 2022. As of May 17, 2022, the company had 591,091 and 0 treasury stock holdings within the scope of allotment acquisition Co., Ltd. and other acquisition Co., Ltd., respectively. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 17% share price gain to ₩90,100, the stock trades at a trailing P/E ratio of 58.7x. Average forward P/E is 12x in the Electronic industry in South Korea. Total returns to shareholders of 538% over the past three years. Price Target Changed • Apr 27
Price target increased to ₩140,000 Up from ₩120,000, the current price target is provided by 1 analyst. New target price is 67% above last closing price of ₩83,800. Stock is up 66% over the past year. The company posted earnings per share of ₩1,540 last year. 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. 6 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Chairman Moo-Hyun Lim was the last director to join the board, commencing their role in 1981. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 19 April 2022. Payout ratio is a comfortable 5.6% but the company is not cash flow positive. Trailing yield: 0.1%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (0.4%). Reported Earnings • Mar 21
Full year 2020 earnings released: EPS ₩345 (vs ₩66.00 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩154.5b (up 33% from FY 2019). Net income: ₩5.08b (up ₩5.98b from FY 2019). Profit margin: 3.3% (up from net loss in FY 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 125% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Feb 22
New 90-day low: ₩43,700 The company is down 5.0% from its price of ₩45,950 on 24 November 2020. The South Korean market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 36% over the same period. Is New 90 Day High Low • Jan 11
New 90-day high: ₩53,100 The company is up 20% from its price of ₩44,250 on 13 October 2020. The South Korean market is up 29% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 37% over the same period. Reported Earnings • Nov 11
Third quarter 2020 earnings released: EPS ₩157 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ₩39.7b (up 27% from 3Q 2019). Net income: ₩2.27b (up ₩2.33b from 3Q 2019). Profit margin: 5.7% (up from net loss in 3Q 2019). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 68% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Oct 21
New 90-day low: ₩38,000 The company is down 10.0% from its price of ₩42,250 on 23 July 2020. The South Korean market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electronic industry, which is up 5.0% over the same period.