SFA Engineering: Share Price Rebounds Sharply While Profits Recover From a 2024 Loss

Thesis

The data supports a recovery story in profitability: operating income moved from a ₩48.4B loss in 2024 to ₩85.9B in 2025, and trailing operating income to H1 2026 is ₩80.1B. The balance sheet looks sound, with cash of ₩279.7B against borrowings of ₩45.0B, and free cash flow of ₩258.1B.

What the data does not support is a return to earlier profitability. The trailing operating margin of 5.2% compares with 12.1% in 2021 and 9.6% in 2022, and trailing ROE of 6.7% is below the 10.5% of 2021. Revenue fell 20.3% in 2025. The share price is 16.0% below its 52-week high of ₩36,500 but 81.9% above the low of ₩16,850, so much of the rebound may already be reflected in the price. Investor flow, foreign ownership and short-balance data are not available, so we cannot say who has driven the recent move.

Business overview

SFA Engineering is a Machinery company listed on KOSDAQ since 2001-12-18, founded in 1998, with 35,908,760 listed shares. CEO is listed as 김상경. Market cap is ₩1.1T and enterprise value is about ₩865.9B.

Revenue was ₩1.56T in 2021, ₩1.68T in 2022, ₩1.88T in 2023 and ₩2.05T in 2024, before falling to ₩1.63T in 2025. Trailing revenue to H1 2026 is ₩1.55T. The data gives no product or segment breakdown.

Model estimate of fair value

Bear

₩34,430

+37%

Base

₩55,533

+122%

Bull

₩91,140

+264%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• 5%+ holding reportSep 17, 2026
• Insider shareholding reportSep 11, 2026
• Investor relations (IR) eventSep 4, 2026
• Insider shareholding reportAug 19, 2026
• Insider shareholding reportAug 19, 2026
• Insider shareholding reportAug 14, 2026
• Cash dividend decisionAug 12, 2026
• Half-year report (Jun 2026)Aug 12, 2026
• Investor relations (IR) eventAug 4, 2026
• Insider shareholding reportAug 4, 2026
• Insider shareholding reportAug 4, 2026
• 5%+ holding reportJul 23, 2026
• Daily prices up to 2026-10-13
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 21, 2026Update noteModel fair value changeSFA Engineering: Model Fair Value Estimate Falls 88% to ₩6,895 per Share
2. Oct 13, 2026InitiationStart of coverage (300 largest)SFA Engineering: Share Price Rebounds Sharply While Profits Recover From a 2024 Loss