Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩2,740, the stock trades at a trailing P/E ratio of 8x. Average forward P/E is 10x in the Entertainment industry in South Korea. Total returns to shareholders of 87% over the past three years. Duyuru • Jun 10
T3 Entertainment Inc. to Report Q1, 2026 Results on Jun 11, 2026 T3 Entertainment Inc. announced that they will report Q1, 2026 results on Jun 11, 2026 Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩2,535, the stock trades at a trailing P/E ratio of 7.4x. Average forward P/E is 10x in the Entertainment industry in South Korea. Total returns to shareholders of 72% over the past three years. New Risk • May 27
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩147.0b (US$98.1m) 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 (46% accrual ratio). Minor Risks Dividend is not well covered by cash flows (132% cash payout ratio). Market cap is less than US$100m (₩147.0b market cap, or US$98.1m). Upcoming Dividend • May 21
Upcoming dividend of ₩40.00 per share Eligible shareholders must have bought the stock before 28 May 2026. Payment date: 17 June 2026. Payout ratio is a comfortable 24% but the company is paying out more than the cash it is generating. Trailing yield: 2.1%. Lower than top quartile of South Korean dividend payers (3.9%). Higher than average of industry peers (1.0%). Valuation Update With 7 Day Price Move • Apr 22
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩3,240, the stock trades at a trailing P/E ratio of 10x. Average trailing P/E is 13x in the Entertainment industry in South Korea. Total returns to shareholders of 107% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of ₩90.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 17 April 2026. Payout ratio is a comfortable 24% but the company is paying out more than the cash it is generating. Trailing yield: 2.3%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (0.7%). Reported Earnings • Mar 18
Full year 2025 earnings released: EPS: ₩308 (vs ₩189 in FY 2024) Full year 2025 results: EPS: ₩308 (up from ₩189 in FY 2024). Revenue: ₩69.5b (up 17% from FY 2024). Net income: ₩16.9b (up 48% from FY 2024). Profit margin: 24% (up from 19% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. New Risk • Mar 18
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 46% 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 (46% accrual ratio). Minor Risk Dividend is not well covered by cash flows (141% cash payout ratio). Duyuru • Mar 07
T3 Entertainment Inc., Annual General Meeting, Mar 20, 2026 T3 Entertainment Inc., Annual General Meeting, Mar 20, 2026, at 09:30 Tokyo Standard Time. Location: conference room, geumcheon-gu, seoul South Korea Declared Dividend • Mar 01
Dividend of ₩90.00 announced Shareholders will receive a dividend of ₩90.00. Ex-date: 30th March 2026 Payment date: 17th April 2026 Dividend yield will be 6.2%, which is higher than the industry average of 2.0%. Sustainability & Growth Dividend is well covered by both earnings (24% earnings payout ratio) and cash flows (22% cash payout ratio). The dividend has not increased over the past 3 years but payments have been stable during that time. Earnings per share has grown by 33% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩2,240, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 14x in the Entertainment industry in South Korea. Total returns to shareholders of 12% over the past three years. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩1,940, the stock trades at a trailing P/E ratio of 7.6x. Average trailing P/E is 14x in the Entertainment industry in South Korea. Total returns to shareholders of 16% over the past three years. Upcoming Dividend • Aug 21
Upcoming dividend of ₩50.00 per share Eligible shareholders must have bought the stock before 28 August 2025. Payment date: 12 September 2025. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (0.5%). Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩1,900, the stock trades at a trailing P/E ratio of 8.7x. Average trailing P/E is 26x in the Entertainment industry in South Korea. Total returns to shareholders of 74% over the past year. Buy Or Sell Opportunity • May 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.6% to ₩1,690. The fair value is estimated to be ₩2,122, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 31%. Buy Or Sell Opportunity • Apr 16
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.0% to ₩1,612. The fair value is estimated to be ₩2,047, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 31%. Buy Or Sell Opportunity • Mar 28
Now 21% undervalued Over the last 90 days, the stock has risen 11% to ₩1,683. The fair value is estimated to be ₩2,143, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 12% over the last 3 years. Earnings per share has declined by 30%. Reported Earnings • Mar 21
Full year 2024 earnings released: EPS: ₩189 (vs ₩87.00 in FY 2023) Full year 2024 results: EPS: ₩189 (up from ₩87.00 in FY 2023). Revenue: ₩59.3b (up 16% from FY 2023). Net income: ₩11.5b (up 105% from FY 2023). Profit margin: 19% (up from 11% in FY 2023). The increase in margin was driven by higher revenue. Declared Dividend • Mar 13
Dividend of ₩60.00 announced Dividend of ₩60.00 is the same as last year. Ex-date: 28th March 2025 Payment date: 22nd April 2025 Dividend yield will be 3.3%, which is higher than the industry average of 2.0%. Sustainability & Growth Dividend is not adequately covered by earnings (100% earnings payout ratio) nor is it covered by cash flows (233% cash payout ratio). The dividend has not increased over the past 2 years but payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 11% to bring the payout ratio under control, which is less than the 49% EPS growth achieved over the last 5 years. Duyuru • Mar 13
T3 Entertainment Inc., Annual General Meeting, Mar 27, 2025 T3 Entertainment Inc., Annual General Meeting, Mar 27, 2025, at 09:30 Tokyo Standard Time. Location: conference room, geumcheon-gu, seoul South Korea New Risk • Nov 28
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: 6.9% Last year net profit margin: 18% 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 Dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 241% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.9% net profit margin). Market cap is less than US$100m (₩88.6b market cap, or US$63.5m). Buy Or Sell Opportunity • Jul 05
Now 21% overvalued Over the last 90 days, the stock has fallen 9.6% to ₩1,115. The fair value is estimated to be ₩919, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 34% over the last year. Earnings per share has declined by 61%. New Risk • May 27
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: 10% Last year net profit margin: 15% 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 Revenue has declined by 34% over the past year. High level of non-cash earnings (64% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (10% net profit margin). Market cap is less than US$100m (₩76.2b market cap, or US$55.9m). Buy Or Sell Opportunity • May 24
Now 21% overvalued Over the last 90 days, the stock has fallen 10% to ₩1,130. The fair value is estimated to be ₩933, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 33% over the last year. Earnings per share has declined by 61%. Buy Or Sell Opportunity • Apr 18
Now 22% overvalued Over the last 90 days, the stock has fallen 5.2% to ₩1,124. The fair value is estimated to be ₩923, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 33% over the last year. Earnings per share has declined by 60%. Reported Earnings • Mar 23
Full year 2023 earnings released: EPS: ₩87.00 (vs ₩220 in FY 2022) Full year 2023 results: EPS: ₩87.00 (down from ₩220 in FY 2022). Revenue: ₩51.0b (down 33% from FY 2022). Net income: ₩5.60b (down 50% from FY 2022). Profit margin: 11% (down from 14% in FY 2022). Upcoming Dividend • Mar 21
Upcoming dividend of ₩60.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 22 April 2024. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 4.4%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (1.1%). New Risk • Dec 07
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Revenue has declined by 19% over the past year. Minor Risks Less than 3 years of financial data is available. Short dividend paying track record (1 year of continuous dividend payments). Large one-off items impacting financial results. Shareholders have been diluted in the past year (2.6% increase in shares outstanding). Market cap is less than US$100m (₩90.0b market cap, or US$68.4m). Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩1,509, the stock trades at a trailing P/E ratio of 10.6x. Average trailing P/E is 29x in the Entertainment industry in South Korea. New Risk • Aug 31
New major risk - Revenue and earnings growth Revenue has declined by 3.5% over the past year. 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 revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue 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 Revenue has declined by 3.5% over the past year. Minor Risks Less than 3 years of financial data is available. Short dividend paying track record (less than a year of continuous dividend payments). Large one-off items impacting financial results. Market cap is less than US$100m (₩92.3b market cap, or US$69.7m). Reported Earnings • May 18
First quarter 2023 earnings released: EPS: ₩45.00 (vs ₩60.00 in 1Q 2022) First quarter 2023 results: EPS: ₩45.00. Revenue: ₩14.3b (down 10% from 1Q 2022). Net income: ₩2.98b (up 3.4% from 1Q 2022). Profit margin: 21% (up from 18% in 1Q 2022). The increase in margin was driven by lower expenses. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩1,793, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 37x in the Entertainment industry in South Korea. Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: ₩220 (vs ₩226 in FY 2021) Full year 2022 results: EPS: ₩220. Revenue: ₩76.2b (up 8.2% from FY 2021). Net income: ₩11.1b (up 2.9% from FY 2021). Profit margin: 14% (in line with FY 2021).