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JONBUR Research · Initiation

Orbitech · 046120 · Engineering services

Orbitech: Share Price Down Sharply as Operating Losses Persist and Net Profit Rests on Non-Operating Items

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Orbitech closed at ₩3,725 on 2026-10-23, down 33.2% over one month and well below its 52-week high of ₩16,410. Trailing twelve-month results show an operating loss of ₩12.7B alongside a net profit of ₩8.1B, with several convertible bond and share sale filings in recent months.

Written Oct 24, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a mixed picture. Trailing revenue of ₩68.3B is above the 2025 level of ₩57.9B, but the operating margin is -18.5%, and the net profit (net margin 11.9%) appears to come from items below the operating line. The filings list several sales of shares in another company, which may be related, but the data does not say so.

The trailing P/E of 15.6 looks moderate only because of that net profit. Free cash flow is -₩20.0B and borrowings of ₩48.1B far exceed cash of ₩7.1B. Foreign ownership fell from 8.4% to 3.2% in 60 days, even though foreigners were small net buyers over the last 20 days. No recent news headlines are available, and no valuation model estimate could be worked out.

Business overview

Orbitech is a KOSDAQ-listed engineering services company, founded in 1991 and listed in 2010, with 33,855,433 shares outstanding and a market capitalization of about ₩126.1B. Revenue has been volatile: ₩78.2B in 2021, ₩59.2B in 2022, ₩64.0B in 2023, ₩66.5B in 2024 and ₩57.9B in 2025. Operating profit was positive only in 2021 (₩10.1B) and 2024 (₩0.7B). A major sales or supply contract was filed on 2026-06-18, but the data gives no details of its size.

Financial analysis

Figures come from filed financial statements. For the twelve months to H1 2026, revenue was ₩68.3B, operating income -₩12.7B and net income ₩8.1B. The operating margin was -18.5%, the net margin 11.9% and ROE 10.0%.

In 2025 revenue fell 12.9%, the operating loss was ₩14.0B (margin -24.2%) and net income was only ₩0.8B (ROE 1.3%). Losses in 2022 were larger, with net income of -₩13.4B.

The balance sheet shows liabilities at 61.3% of equity, borrowings of ₩48.1B, cash of ₩7.1B and negative free cash flow of ₩20.0B. Enterprise value is ₩167.1B. No dividend is paid.

Valuation

Current multiples are a P/E of 15.6, P/B of 1.2 and P/S of 1.8; EV/EBITDA is not available. Year-end P/B was 2.1 in 2025, 1.1 in 2024, 2.2 in 2023 and 3.5 in 2021, so the current P/B sits near the low end of its own range. Year-end P/E was 163.4 in 2025 and 30.2 in 2024, so today's 15.6 reflects the recent jump in net profit.

Among the listed peers, Samsung E&A trades at a P/E of 17.7 and P/B of 2.3, and Hanyang ENG at 7.5 and 0.7. Others show much higher figures, such as KEPCO Engineering & Construction at a P/E of 99.5 and POSCO DX at 90.2. Orbitech's multiples fall within this wide range.

The valuation model could not produce an estimate per share, so there is no model estimate to compare with the ₩3,725 price.

Catalysts

  • The convertible bond issue decision of 2026-08-24, amended twice, and the securities issuance results filed 2026-09-01 may affect the share count and funding.
  • The conversion price adjustment filed 2026-07-10 could matter for potential dilution.
  • Amended filings on sales of shares in another company (2026-09-30) may show further asset disposals.
  • The major sales or supply contract filed 2026-06-18 could support revenue if it is carried out.
  • The next quarterly report will show whether the operating loss narrows.

Risks

  • The operating loss of ₩12.7B over the last twelve months means core operations are not covering costs.
  • Net profit appears to depend on non-operating items, which may not repeat.
  • Borrowings of ₩48.1B against cash of ₩7.1B and negative free cash flow of ₩20.0B point to funding pressure.
  • Convertible bonds and conversion price adjustments could dilute existing shareholders.
  • The shares fell 33.2% in one month and foreign ownership fell from 8.4% to 3.2%, showing weak and volatile demand; short balance is 2.5%.

Closing view

The data shows a company with recurring operating losses, thin cash and rising reliance on convertible financing, set against a reported net profit and a P/B of 1.2 that is low compared with its own history. The moderate P/E is based on earnings that do not come from operations, and no model estimate is available, so the evidence is mixed. Future filings on funding, asset sales and operating results will be the key items to follow.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 24, 2026InitiationStart of coverage (reader request)Orbitech: Share Price Down Sharply as Operating Losses Persist and Net Profit Rests on Non-Operating Items

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information