Chonbang Reports 2024 Net Profit Turnaround and Dividend Despite Operating Loss, PF Loan Risk Remains

Chonbang reported 2024 consolidated revenue of 57.2B KRW and operating loss of 8.5B KRW, narrowing the loss by 24B KRW from the prior year but remaining in the red
Net profit turned positive to 8.9B KRW from a net loss of 19.2B KRW in 2023, driven by financial income and reversal of loan loss provisions
Total assets stood at 232B KRW with a debt ratio of 16.76%; however, a PF loan (net 69.5B KRW) carries a 31.7B KRW allowance, signaling credit risk
Declared a cash dividend of 1,000 KRW per share (total 1.14B KRW), representing a dividend yield of 5.42% and payout ratio of 12.8%
Treasury shares amount to 540,530 shares (32.17% of total), with no additional buyback or cancellation plans
Business contraction continues: Yeongam and Iksan plants have halted production, and only the Pyeongdong plant is operating amid prolonged domestic and export weakness
[AI Summary]Despite persistent operating losses, Chonbang achieved net profit and paid dividends in 2024, largely due to non-operating gains such as reversal of PF loan impairment. However, structural downsizing of its core business and the credit risk from PF loans (45.6% allowance on net amount) weigh on future earnings and stock performance. While the dividend offers short-term appeal, restoring long-term business competitiveness remains critical