Coway: Transitioning from Dividend Play to Growth Stock

Coway (021240 KR): Uncertainty Priced In, a Rare Entry Point to a High-Quality Company

Coway: Business Model Proves Resilient, Earnings Upgrades Set to Continue

Coway: Update Following AGM, Revised Dividend Policy and 1Q2020 Results

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Equity Bottom-Up

<p>Following managements rather conservative outlook given 3 months ago, due to resurging COVID-19 impact and CS Doctor strike, <a href="https://www.smartkarma.com/entities/coway-co-ltd" target="_blank" data-smartkarma-citation="entities:3022:1" rel="noopener">Coway Co Ltd (021240 KS)</a> reported a solid set of 3Q20 results as the operating leverage in the Malaysian and US operations more than offset weakness in the domestic operations. This should set them up to comfortably beat Operating Profit guidance and accelerate bottom-line growth going into next year. Following relative share price weakness over the past 3 months, Coway continues to trade at a significant discount to its historical average trading range.</p><div class="content-highlight">
<p> <strong><em>Please also see previous insights on the subject:</em></strong></p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/coway-business-model-proves-resilient-earnings-upgrades-set-to-continue" target="_blank" data-smartkarma-citation="insights:41942" rel="noopener">Coway: Business Model Proves Resilient, Earnings Upgrades Set to Continue</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/coway-021240-kr-uncertainty-priced-in-a-rare-entry-point-to-a-high-quality-company" target="_blank" data-smartkarma-citation="insights:37736" rel="noopener">Coway (021240 KR): Uncertainty Priced In, a Rare Entry Point to a High-Quality Company</a> </li>
</ul>
</div>

Following managements rather conservative outlook given 3 months ago, due to resurging COVID-19 impact and CS Doctor strike, Coway Co Ltd (021240 KS) reported a solid set of 3Q20 results as the operating leverage in the Malaysian and US operations more than offset weakness in the domestic operations. This should set them up to comfortably beat Operating Profit guidance and accelerate bottom-line growth going into next year. Following relative share price weakness over the past 3 months, Coway continues to trade at a significant discount to its historical average trading range.
 Please also see previous insights on the subject:


Coway: Business Model Proves Resilient, Earnings Upgrades Set to Continue 

Coway (021240 KR): Uncertainty Priced In, a Rare Entry Point to a High-Quality Company 



Coway: Overseas Operating Leverage Kicking In