Valuation Update With 7 Day Price Move • May 18
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to ₩3,465, the stock trades at a trailing P/E ratio of 11.9x. Average trailing P/E is 19x in the Communications industry in South Korea. Total returns to shareholders of 9.3% over the past three years. Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩4,000, the stock trades at a trailing P/E ratio of 13.8x. Average trailing P/E is 17x in the Communications industry in South Korea. Total returns to shareholders of 40% over the past three years. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to ₩3,510, the stock trades at a trailing P/E ratio of 12.1x. Average trailing P/E is 15x in the Communications industry in South Korea. Total returns to shareholders of 15% over the past three years. New Risk • Apr 05
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 13% 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 Risk High level of non-cash earnings (30% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Profit margins are more than 30% lower than last year (4.3% net profit margin). Market cap is less than US$100m (₩42.3b market cap, or US$28.0m). New Risk • Apr 01
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: 4.3% Last year net profit margin: 7.5% 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 High level of non-cash earnings (30% accrual ratio). Minor Risks Profit margins are more than 30% lower than last year (4.3% net profit margin). Market cap is less than US$100m (₩35.2b market cap, or US$23.3m). Valuation Update With 7 Day Price Move • Mar 11
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to ₩2,630, the stock trades at a trailing P/E ratio of 3.5x. Average trailing P/E is 10x in the Communications industry in South Korea. Total loss to shareholders of 3.0% over the past three years. Duyuru • Mar 10
Kisan Telecom Co., Ltd, Annual General Meeting, Mar 30, 2026 Kisan Telecom Co., Ltd, Annual General Meeting, Mar 30, 2026, at 10:00 Tokyo Standard Time. Location: conference room, 449, dunchon-daero, jungwon-gu, gyeonggi-do, seongnam South Korea Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: ₩213 (vs ₩83.00 loss in 3Q 2024) Third quarter 2025 results: EPS: ₩213 (up from ₩83.00 loss in 3Q 2024). Revenue: ₩20.7b (down 12% from 3Q 2024). Net income: ₩3.10b (up ₩4.32b from 3Q 2024). Profit margin: 15% (up from net loss in 3Q 2024). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. New Risk • Nov 20
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 22% 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 (22% accrual ratio). Minor Risk Market cap is less than US$100m (₩27.9b market cap, or US$19.0m). Reported Earnings • May 20
First quarter 2025 earnings released: EPS: ₩25.00 (vs ₩51.00 loss in 1Q 2024) First quarter 2025 results: EPS: ₩25.00 (up from ₩51.00 loss in 1Q 2024). Revenue: ₩18.2b (up 60% from 1Q 2024). Net income: ₩361.3m (up ₩1.10b from 1Q 2024). Profit margin: 2.0% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. Duyuru • Mar 05
Kisan Telecom Co., Ltd, Annual General Meeting, Mar 28, 2025 Kisan Telecom Co., Ltd, Annual General Meeting, Mar 28, 2025, at 10:00 Tokyo Standard Time. Location: conference room, 449, dunchon-daero, jungwon-gu, gyeonggi-do, seongnam South Korea New Risk • Feb 16
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 9.6% 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 Risk Earnings have declined by 3.8% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.6% average weekly change). Market cap is less than US$100m (₩30.5b market cap, or US$21.2m). Reported Earnings • Nov 20
Third quarter 2024 earnings released: ₩83.00 loss per share (vs ₩60.00 loss in 3Q 2023) Third quarter 2024 results: ₩83.00 loss per share (further deteriorated from ₩60.00 loss in 3Q 2023). Revenue: ₩23.5b (up 78% from 3Q 2023). Net loss: ₩1.21b (loss widened 39% from 3Q 2023). 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 14% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 15
Second quarter 2024 earnings released: ₩108 loss per share (vs ₩24.00 profit in 2Q 2023) Second quarter 2024 results: ₩108 loss per share (down from ₩24.00 profit in 2Q 2023). Revenue: ₩17.7b (down 1.5% from 2Q 2023). Net loss: ₩1.58b (down ₩1.93b from profit in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. New Risk • May 23
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: 0.4% Last year net profit margin: 8.0% 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 Profit margins are more than 30% lower than last year (0.4% net profit margin). Market cap is less than US$100m (₩33.6b market cap, or US$24.7m). Reported Earnings • Mar 22
Full year 2023 earnings released: EPS: ₩223 (vs ₩209 in FY 2022) Full year 2023 results: EPS: ₩223 (up from ₩209 in FY 2022). Revenue: ₩73.9b (up 9.0% from FY 2022). Net income: ₩3.26b (up 7.5% from FY 2022). Profit margin: 4.4% (down from 4.5% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 103% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 19
Third quarter 2023 earnings released: ₩60.00 loss per share (vs ₩110 profit in 3Q 2022) Third quarter 2023 results: ₩60.00 loss per share (down from ₩110 profit in 3Q 2022). Revenue: ₩13.2b (down 18% from 3Q 2022). Net loss: ₩871.2m (down 155% from profit in 3Q 2022). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Oct 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩2,985, the stock trades at a trailing P/E ratio of 7.3x. Average trailing P/E is 16x in the Communications industry in South Korea. Total loss to shareholders of 1.5% over the past three years. Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to ₩2,920, the stock trades at a trailing P/E ratio of 6.8x. Average trailing P/E is 11x in the Communications industry in South Korea. Total loss to shareholders of 1.2% over the past three years. New Risk • Jul 10
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 8.1% 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 Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.1% average weekly change). Market cap is less than US$100m (₩49.0b market cap, or US$37.7m). Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to ₩3,725, the stock trades at a trailing P/E ratio of 8.6x. Average trailing P/E is 13x in the Communications industry in South Korea. Total returns to shareholders of 32% over the past three years. Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩209 (vs ₩80.00 loss in FY 2021) Full year 2022 results: EPS: ₩209 (up from ₩80.00 loss in FY 2021). Revenue: ₩67.8b (up 9.6% from FY 2021). Net income: ₩3.03b (up ₩4.19b from FY 2021). Profit margin: 4.5% (up from net loss in FY 2021). Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improved over the past week After last week's 25% share price gain to ₩3,495, the stock trades at a trailing P/E ratio of 25.9x. Average trailing P/E is 10x in the Communications industry in South Korea. Total returns to shareholders of 54% over the past three years. Is New 90 Day High Low • Jan 25
New 90-day high: ₩2,950 The company is up 11% from its price of ₩2,650 on 27 October 2020. The South Korean market is up 33% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 26% over the same period. Is New 90 Day High Low • Dec 22
New 90-day low: ₩2,600 The company is down 10.0% from its price of ₩2,890 on 23 September 2020. The South Korean market is up 18% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Communications industry, which is up 2.0% over the same period.