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JONBUR Research · Initiation

BMTCo · 086670 · Machinery

BMTCo: Profit Recovery Reflected in Low Multiples, With a Wide Model Range and Negative Free Cash Flow

Why this report

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

BMTCo, a KOSDAQ machinery company with a market value of about ₩169.2B, has recovered profitability since 2024, with trailing operating margin of 11.1% and net margin of 14.7%. The shares trade at 7.4 times earnings and 1.1 times book value, while a model estimate based on the assumptions shown sits well below the current price in the base case.

Written Oct 29, 2026 · Data as of Oct 28, 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 story of earnings recovery. Operating income rose from ₩6.5B in 2024 to ₩15.3B in 2025, and the trailing figure to H1 2026 is ₩17.2B. Return on equity is 16.6%, up from 3.4% in 2024. The share price is up 27.1% over three months and 46.4% over one year, though it fell 12.9% in the past month and sits below its 52-week high of ₩22,200.

What the data does not support as clearly is the durability of the recovery. Revenue fell 11.2% in 2024 and profits swung widely across the five years shown. Free cash flow is negative at about -₩23.0B on a trailing basis, and borrowings of ₩93.8B far exceed cash of ₩2.4B. A news report on 22 October 2026 says the company was approved as a supplier to a leading global semiconductor equipment company. The data provides no figures on order size or revenue contribution.

Business overview

BMTCo (비엠티) is a KOSDAQ-listed company in the machinery sector, founded in July 2000 and listed in November 2007. It has 9,925,885 listed shares and is led by two co-CEOs, Yoon Jong-chan and Yoon Min-jung. Market capitalization is ₩169.2B and enterprise value is ₩250.1B. Revenue was ₩108.0B in 2021, ₩142.1B in 2022, ₩149.6B in 2023, ₩132.8B in 2024 and ₩147.0B in 2025. Trailing revenue to H1 2026 is ₩155.3B. Foreign ownership is 3.5%, up from 1.5% sixty days earlier, and the short balance is 0.1%.

Financial analysis

These figures come from filed financial statements. Trailing revenue to H1 2026 is ₩155.3B, operating income ₩17.2B and net income ₩22.9B. Net income exceeds operating income, which implies non-operating gains, but the data does not explain their source.

Annual operating margin was 4.3% in 2021, 16.2% in 2022, 11.7% in 2023, 4.9% in 2024 and 10.4% in 2025. Return on equity was 7.1%, 16.0%, 14.8%, 3.4% and 14.0% over the same years.

The balance sheet shows liabilities at 79.8% of equity, borrowings of ₩93.8B and cash of ₩2.4B. Trailing free cash flow is -₩23.0B. A filing in June 2026 concerned new facility investment, which may relate to the cash outflow, though the data does not say.

Valuation

The shares trade at 7.4 times earnings, 1.1 times book value and 1.1 times sales, with a dividend yield of 3.5%. EV/EBITDA is not available. Year-end P/E was 6.1 in 2025, 17.6 in 2024, 7.9 in 2023, 9.9 in 2022 and 20.0 in 2021, so the current multiple is within the lower part of its own history. Year-end P/B ranged from 0.6 to 1.4.

The listed peers, including Doosan Enerbility, Hanmi Semiconductor, Jusung Engineering, Rainbow Robotics and EO Technics, show P/E ratios from 47.5 to 4,610.6 and P/B ratios from 4.8 to 59.1. They are much larger and valued far more richly, so they are of limited use as a direct comparison.

The valuation model uses a 5-year discounted cash flow at a 6.3% rate, based on trailing figures to H1 2026. It gives a model estimate based on the assumptions shown of ₩10,498 per share in the base case, ₩1,886 in the bear case and ₩27,110 in the bull case. The share price is ₩17,050, above the base case and inside the wide bear-to-bull range. The width of that range shows how sensitive the result is to the assumptions, especially given negative free cash flow.

Catalysts

  • A 22 October 2026 Money Today report said BMTCo was approved as an official supplier to a leading global semiconductor equipment company, though the data gives no financial details.
  • The half-year report filed on 14 August 2026 and preliminary earnings on 10 August 2026 set the latest trailing figures, and the next results will show whether margins hold.
  • Investor relations events were filed on 8 September 2026 and twice on 4 May 2026, indicating ongoing communication with investors.
  • Foreign ownership rose from 1.5% to 3.5% over 60 days, though 20-day flows show net foreign selling of about ₩0.9B.
  • The corrected filings on new facility investment from June 2026 may point to capacity expansion, though details are not in the data.

Risks

  • Free cash flow is negative at about -₩23.0B on a trailing basis while borrowings of ₩93.8B far exceed cash of ₩2.4B.
  • Earnings have been volatile, with operating margin falling from 11.7% in 2023 to 4.9% in 2024 and revenue declining 11.2% that year.
  • Net income exceeds operating income, so part of profit may come from non-operating items that may not recur.
  • The share price is above the base-case model estimate, and the bear-to-bull range of ₩1,886 to ₩27,110 shows high uncertainty.
  • Over the past 20 days foreigners and institutions were net sellers while retail investors were net buyers, and the price fell 12.9% in the past month.

Closing view

The data shows a company whose profits have recovered, with a 16.6% return on equity and modest multiples of 7.4 times earnings and 1.1 times book. Against that, cash flow is negative, debt is high relative to cash, and results have swung sharply from year to year. The model estimate based on the assumptions shown is below the current share price in the base case, and the range is very wide. The supplier approval news is potentially relevant but is not yet quantified in the filings provided. Whether the recent margin level proves durable and cash generation turns positive will be the key evidence to watch.

Model estimate of fair value

Bear
₩1,886
-88%
Base
₩10,498
-34%
Bull
₩27,110
+71%

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 6.3%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 29, 2026InitiationStart of coverage (reader request)BMTCo: Profit Recovery Reflected in Low Multiples, With a Wide Model Range and Negative Free Cash Flow

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