New Risk • Jul 21
New major risk - Revenue and earnings growth Earnings have declined by 3.2% 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 3.2% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩77.1b market cap, or US$52.3m). Reported Earnings • Mar 20
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: ₩846 (down from ₩945 in FY 2024). Revenue: ₩78.9b (down 1.7% from FY 2024). Net income: ₩13.5b (down 11% from FY 2024). Profit margin: 17% (down from 19% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 8.2%. Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Duyuru • Feb 27
HRS Co., Ltd, Annual General Meeting, Mar 26, 2026 HRS Co., Ltd, Annual General Meeting, Mar 26, 2026, at 10:00 Tokyo Standard Time. Location: auditorium, 7, chupalsandan 2-gil, paengseong-eup, gyeonggi-do, pyeongtaek South Korea Upcoming Dividend • Dec 22
Upcoming dividend of ₩300 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 09 April 2026. Payout ratio is a comfortable 32% and this is well supported by cash flows. Trailing yield: 7.2%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.3%). Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: ₩233 (vs ₩194 in 3Q 2024) Third quarter 2025 results: EPS: ₩233 (up from ₩194 in 3Q 2024). Revenue: ₩20.8b (up 10.0% from 3Q 2024). Net income: ₩3.72b (up 20% from 3Q 2024). Profit margin: 18% (up from 16% 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 13% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Declared Dividend • Nov 13
First half dividend of ₩300 announced Shareholders will receive a dividend of ₩300. Ex-date: 29th December 2025 Payment date: 9th April 2026 Dividend yield will be 7.5%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by both earnings (44% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has increased by an average of 54% per year over the past 6 years. However, payments have been volatile during that time. Earnings per share has grown by 25% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Upcoming Dividend • Sep 22
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 05 November 2025. Payout ratio is a comfortable 44% and this is well supported by cash flows. Trailing yield: 7.4%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (1.4%). Declared Dividend • Aug 18
First half dividend of ₩100.00 announced Shareholders will receive a dividend of ₩100.00. Ex-date: 29th September 2025 Payment date: 5th November 2025 Dividend yield will be 7.4%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is covered by both earnings (44% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has increased by an average of 54% per year over the past 6 years. However, payments have been volatile during that time. Earnings per share has grown by 25% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 16
Second quarter 2025 earnings released: EPS: ₩239 (vs ₩239 in 2Q 2024) Second quarter 2025 results: EPS: ₩239 (in line with 2Q 2024). Revenue: ₩20.3b (down 6.3% from 2Q 2024). Net income: ₩3.81b (flat on 2Q 2024). Profit margin: 19% (up from 18% in 2Q 2024). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 15
Full year 2024 earnings released: EPS: ₩945 (vs ₩758 in FY 2023) Full year 2024 results: EPS: ₩945 (up from ₩758 in FY 2023). Revenue: ₩80.2b (up 2.6% from FY 2023). Net income: ₩15.1b (up 25% from FY 2023). Profit margin: 19% (up from 16% in FY 2023). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 7.7% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Duyuru • Feb 25
HRS Co., Ltd, Annual General Meeting, Mar 26, 2025 HRS Co., Ltd, Annual General Meeting, Mar 26, 2025, at 10:00 Tokyo Standard Time. Location: auditorium, 7, chupalsandan 2-gil, paengseong-eup, gyeonggi-do, pyeongtaek 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: 09 April 2025. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 4.3%. Within top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (2.2%). Declared Dividend • Nov 16
Dividend of ₩200 announced Shareholders will receive a dividend of ₩200. Ex-date: 27th December 2024 Payment date: 9th April 2025 Dividend yield will be 6.2%, which is higher than the industry average of 1.7%. Sustainability & Growth Dividend is well covered by both earnings (22% earnings payout ratio) and cash flows (40% cash payout ratio). The dividend has increased by an average of 46% per year over the past 5 years. However, payments have been volatile during that time. EPS is expected to grow by 8.8% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 14
Third quarter 2024 earnings released: EPS: ₩194 (vs ₩183 in 3Q 2023) Third quarter 2024 results: EPS: ₩194 (up from ₩183 in 3Q 2023). Revenue: ₩18.9b (down 4.7% from 3Q 2023). Net income: ₩3.10b (up 6.0% from 3Q 2023). Profit margin: 16% (up from 15% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Chemicals industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 16% per year. 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 (₩87.7b market cap, or US$66.7m). Reported Earnings • May 18
First quarter 2024 earnings released: EPS: ₩243 (vs ₩154 in 1Q 2023) First quarter 2024 results: EPS: ₩243 (up from ₩154 in 1Q 2023). Revenue: ₩20.5b (up 7.4% from 1Q 2023). Net income: ₩3.88b (up 58% from 1Q 2023). Profit margin: 19% (up from 13% in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Mar 12
Full year 2023 earnings released: EPS: ₩758 (vs ₩628 in FY 2022) Full year 2023 results: EPS: ₩758 (up from ₩628 in FY 2022). Revenue: ₩78.2b (down 9.2% from FY 2022). Net income: ₩12.1b (up 21% from FY 2022). Profit margin: 16% (up from 12% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩200 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 30% 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 (1.8%). Reported Earnings • Nov 19
Third quarter 2023 earnings released: EPS: ₩183 (vs ₩121 in 3Q 2022) Third quarter 2023 results: EPS: ₩183 (up from ₩121 in 3Q 2022). Revenue: ₩19.8b (down 2.5% from 3Q 2022). Net income: ₩2.93b (up 51% from 3Q 2022). Profit margin: 15% (up from 9.5% in 3Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 26
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩5,850, the stock trades at a trailing P/E ratio of 9.3x. Average trailing P/E is 14x in the Chemicals industry in South Korea. Total returns to shareholders of 169% over the past three years. Reported Earnings • Mar 12
Full year 2022 earnings released: EPS: ₩628 (vs ₩1,303 in FY 2021) Full year 2022 results: EPS: ₩628 (down from ₩1,303 in FY 2021). Revenue: ₩86.1b (up 2.4% from FY 2021). Net income: ₩10.0b (down 52% from FY 2021). Profit margin: 12% (down from 25% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 42% per year whereas the company’s share price has increased by 44% per year. Upcoming Dividend • Dec 21
Upcoming dividend of ₩200 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 10 April 2023. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 3.5%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (2.4%). Valuation Update With 7 Day Price Move • Jun 28
Investor sentiment improved over the past week After last week's 16% share price gain to ₩6,240, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total returns to shareholders of 151% over the past three years. Valuation Update With 7 Day Price Move • Jun 14
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩6,230, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Chemicals industry in South Korea. Total returns to shareholders of 140% over the past three years. Reported Earnings • Mar 11
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: ₩1,303 (up from ₩571 in FY 2020). Revenue: ₩84.1b (up 25% from FY 2020). Net income: ₩20.8b (up 126% from FY 2020). Profit margin: 25% (up from 14% in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.7%. Over the next year, revenue is forecast to grow 19%, compared to a 22% growth forecast for the industry in South Korea. Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has only increased by 42% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 15
Investor sentiment improved over the past week After last week's 18% share price gain to ₩7,530, the stock trades at a trailing P/E ratio of 6.6x. Average trailing P/E is 16x in the Chemicals industry in South Korea. Total returns to shareholders of 152% over the past three years. Upcoming Dividend • Dec 22
Upcoming dividend of ₩150 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 11 April 2022. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.5%). Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩6,660, the stock trades at a trailing P/E ratio of 5.8x. Average trailing P/E is 16x in the Chemicals industry in South Korea. Total returns to shareholders of 137% over the past three years. Reported Earnings • Nov 17
Third quarter 2021 earnings released: EPS ₩191 (vs ₩164 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2021 results: Revenue: ₩21.0b (up 23% from 3Q 2020). Net income: ₩3.05b (up 16% from 3Q 2020). Profit margin: 14% (in line with 3Q 2020). 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 46% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment improved over the past week After last week's 21% share price gain to ₩9,160, the stock trades at a trailing P/E ratio of 8.2x. Average trailing P/E is 20x in the Chemicals industry in South Korea. Total returns to shareholders of 213% over the past three years. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improved over the past week After last week's 23% share price gain to ₩6,800, the stock trades at a trailing P/E ratio of 6.1x. Average forward P/E is 12x in the Chemicals industry in South Korea. Total returns to shareholders of 103% over the past three years. Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improved over the past week After last week's 17% share price gain to ₩6,470, the stock trades at a trailing P/E ratio of 10.2x. Average forward P/E is 10x in the Chemicals industry in South Korea. Total returns to shareholders of 55% over the past three years. Valuation Update With 7 Day Price Move • Apr 05
Investor sentiment improved over the past week After last week's 17% share price gain to ₩6,040, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 12x in the Chemicals industry in South Korea. Total returns to shareholders of 46% over the past three years. Reported Earnings • Mar 10
Full year 2020 earnings released: EPS ₩571 (vs ₩60.00 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ₩67.4b (up 1.0% from FY 2019). Net income: ₩9.21b (up ₩8.23b from FY 2019). Profit margin: 14% (up from 1.5% in FY 2019). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 18% share price decline to ₩5,810, the stock is trading at a trailing P/E ratio of 13.6x, down from the previous P/E ratio of 16.5x. This compares to an average P/E of 17x in the Chemicals industry in South Korea. Total returns to shareholders over the past three years are 30%. Is New 90 Day High Low • Feb 15
New 90-day high: ₩7,140 The company is up 72% from its price of ₩4,145 on 17 November 2020. The South Korean market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 31% over the same period. Valuation Update With 7 Day Price Move • Feb 04
Investor sentiment improved over the past week After last week's 24% share price gain to ₩6,730, the stock is trading at a trailing P/E ratio of 15.7x, up from the previous P/E ratio of 12.6x. This compares to an average P/E of 18x in the Chemicals industry in South Korea. Total returns to shareholders over the past three years are 48%. Is New 90 Day High Low • Jan 25
New 90-day high: ₩5,750 The company is up 67% from its price of ₩3,445 on 27 October 2020. The South Korean market is up 33% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 40% over the same period. Valuation Update With 7 Day Price Move • Dec 29
Investor sentiment improved over the past week After last week's 16% share price gain to ₩5,500, the stock is trading at a trailing P/E ratio of 12.8x, up from the previous P/E ratio of 11.1x. This compares to an average P/E of 15x in the Chemicals industry in South Korea. Total returns to shareholders over the past three years are 31%. Is New 90 Day High Low • Dec 29
New 90-day high: ₩5,500 The company is up 59% from its price of ₩3,470 on 29 September 2020. The South Korean market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 22% over the same period. Is New 90 Day High Low • Dec 10
New 90-day high: ₩4,445 The company is up 17% from its price of ₩3,800 on 11 September 2020. The South Korean market is up 13% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 13% over the same period. Reported Earnings • Nov 18
Third quarter 2020 earnings released: EPS ₩164 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: ₩17.2b (up 1.1% from 3Q 2019). Net income: ₩2.63b (up 437% from 3Q 2019). Profit margin: 15% (up from 2.9% in 3Q 2019). The increase in margin was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Nov 09
New 90-day high: ₩4,080 The company is up 24% from its price of ₩3,300 on 11 August 2020. The South Korean market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Chemicals industry, which is up 6.0% over the same period. Is New 90 Day High Low • Oct 12
New 90-day high: ₩3,970 The company is up 16% from its price of ₩3,435 on 14 July 2020. The South Korean market is up 10.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Chemicals industry, which is up 30% over the same period.