Buy Or Sell Opportunity • May 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 21% to ₩13,120. The fair value is estimated to be ₩16,484, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 46%. New Risk • Apr 10
New major risk - Revenue and earnings growth Earnings have declined by 20% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 20% per year over the past 5 years. Minor Risks High level of debt (44% net debt to equity). Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.7% net profit margin). Market cap is less than US$100m (₩83.2b market cap, or US$56.2m). Reported Earnings • Mar 25
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: ₩1,967 (down from ₩2,883 in FY 2024). Revenue: ₩244.1b (up 7.7% from FY 2024). Net income: ₩11.5b (down 34% from FY 2024). Profit margin: 4.7% (down from 7.7% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 7.0%. Revenue is forecast to grow 8.3% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Leisure industry in Asia. Duyuru • Mar 17
Dong In Entech Co., Ltd, Annual General Meeting, Mar 27, 2026 Dong In Entech Co., Ltd, Annual General Meeting, Mar 27, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 370-26, daegotbuk-ro, gyeonggi-do, gimpo South Korea Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩16,840, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 16x in the Leisure industry in Asia. Total returns to shareholders of 10% over the past year. Simply Wall St's valuation model estimates the intrinsic value at ₩13,331 per share. Buy Or Sell Opportunity • Feb 10
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to ₩15,880. The fair value is estimated to be ₩13,230, 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. Earnings per share has declined by 48%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 29% in the next 2 years. Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: ₩692 (vs ₩316 loss in 3Q 2024) Third quarter 2025 results: EPS: ₩692 (up from ₩316 loss in 3Q 2024). Revenue: ₩54.7b (up 1.3% from 3Q 2024). Net income: ₩4.13b (up ₩5.79b from 3Q 2024). Profit margin: 7.6% (up from net loss in 3Q 2024). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Leisure industry in Asia. Upcoming Dividend • Oct 31
Upcoming dividend of ₩310 per share Eligible shareholders must have bought the stock before 07 November 2025. Payment date: 25 November 2025. Payout ratio is a comfortable 46% but the company is not cash flow positive. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (3.7%). Higher than average of industry peers (2.2%). Buy Or Sell Opportunity • Oct 22
Now 20% overvalued Over the last 90 days, the stock has fallen 9.9% to ₩13,860. The fair value is estimated to be ₩11,532, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last year. Earnings per share has declined by 58%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 116% in the next 2 years. Buy Or Sell Opportunity • Sep 09
Now 20% overvalued Over the last 90 days, the stock has fallen 6.4% to ₩14,290. The fair value is estimated to be ₩11,879, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last year. Earnings per share has declined by 58%. Revenue is forecast to grow by 15% in 2 years. Earnings are forecast to grow by 116% in the next 2 years. Reported Earnings • Aug 20
Second quarter 2025 earnings released: ₩126 loss per share (vs ₩914 profit in 2Q 2024) Second quarter 2025 results: ₩126 loss per share (down from ₩914 profit in 2Q 2024). Revenue: ₩62.1b (up 11% from 2Q 2024). Net loss: ₩737.6m (down 113% from profit in 2Q 2024). Revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 6.9% growth forecast for the Leisure industry in Asia. New Risk • May 22
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. 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 Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (21% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (6.0% net profit margin). Market cap is less than US$100m (₩89.3b market cap, or US$64.5m). Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩17,360, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 14x in the Leisure industry in Asia. Total loss to shareholders of 14% over the past year. Buy Or Sell Opportunity • Apr 08
Now 20% overvalued Over the last 90 days, the stock has fallen 19% to ₩13,980. The fair value is estimated to be ₩11,643, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.0% over the last 3 years. Earnings per share has declined by 21%. Reported Earnings • Mar 26
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: ₩2,883 (down from ₩4,321 in FY 2023). Revenue: ₩226.7b (up 4.9% from FY 2023). Net income: ₩17.4b (down 15% from FY 2023). Profit margin: 7.7% (down from 9.4% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 8.1%. Earnings per share (EPS) also missed analyst estimates by 21%. Duyuru • Mar 07
Dong In Entech Co., Ltd, Annual General Meeting, Mar 28, 2025 Dong In Entech Co., Ltd, Annual General Meeting, Mar 28, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 370-26, daegotbuk-ro, tongjin-eup, gyeonggi-do, gimpo South Korea Upcoming Dividend • Dec 20
Upcoming dividend of ₩560 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 28 April 2025. Payout ratio is a comfortable 26% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (1.9%). New Risk • Nov 20
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: 5.4% Last year net profit margin: 11% 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 Dividend is not well covered by cash flows (0% cash payout ratio). Profit margins are more than 30% lower than last year (5.4% net profit margin). Market cap is less than US$100m (₩93.7b market cap, or US$67.1m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩16,990, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 13x in the Leisure industry in Asia. Simply Wall St's valuation model estimates the intrinsic value at ₩11,938 per share. Duyuru • Jul 20
Dong In Entech Co., Ltd (KOSE:A111380) announces an Equity Buyback for KRW 2,000 million worth of its shares. Dong In Entech Co., Ltd (KOSE:A111380) announces a share repurchase program. Under the program, the company will repurchase up to KRW 2,000 million worth of its shares, pursuant to a contract with NH Investment & Securities Co., Ltd. The purpose of the program is stock price stabilization and shareholder value Improvement. The program will expire on July 18, 2025. As of July 18, 2024, the company had 72,038 shares in treasury within scope available for dividend and under other acquisitions. Buy Or Sell Opportunity • May 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.4% to ₩25,000. The fair value is estimated to be ₩31,350, however this is not to be taken as a buy recommendation but rather should be used as a guide only. For the next 3 years, revenue is forecast to grow by 18% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. New Risk • Apr 04
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩133.8b (US$99.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (24% accrual ratio). Minor Risks Less than 3 years of financial data is available. Share price has been volatile over the past 3 months (8.7% average weekly change). Market cap is less than US$100m (₩133.8b market cap, or US$99.4m). New Risk • Feb 08
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 Risks High level of debt (67% net debt to equity). Less than 3 years of financial data is available. Share price has been volatile over the past 3 months (9.5% average weekly change). Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to ₩30,300, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 16x in the Leisure industry in Asia. Valuation Update With 7 Day Price Move • Jan 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩24,650, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 17x in the Leisure industry in Asia. Duyuru • Dec 07
Dong In Entech Co., Ltd (KOSE:A111380) announces an Equity Buyback for KRW 2,000 million worth of its shares. Dong In Entech Co., Ltd (KOSE:A111380) announces a share repurchase program. Under the program, the company will repurchase up to KRW 2,000 million worth of its shares, pursuant to a contract with NH Investment & Securities Co., Ltd. The purpose of the program is stock price stabilization and shareholder value Improvement. The program will expire on December 6, 2024. As of December 6, 2023, the company had no shares in treasury within scope available for dividend and under other acquisitions. 
