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JONBUR Research · Initiation

MNTECHCo · 095500 · Rubber & plastics

MNTECHCo: Shares Down 40.2% Over a Year as Revenue Shrinks and Margins Stay Thin

Why this report

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MNTECHCo closed at ₩5,950 on 2026-10-23, down 40.2% over one year and close to its 52-week low of ₩5,220. Trailing revenue of ₩478.4B is the lowest of the five years shown, and the model estimate based on the assumptions shown is ₩6,291 per share in the base case.

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 picture of a company with falling sales and thin profitability. Revenue has fallen for two straight years, and the trailing operating margin is 3.1%. The balance sheet looks sound: cash of ₩115.6B exceeds borrowings of ₩42.3B, and the stock trades at 0.6 times book value.

What the data does not settle is whether earnings will recover. Trailing P/E of 18.3 is above the peer figures for the large tire makers, but trailing earnings are low, which inflates the multiple. Recent filings include a derivatives trading loss notice, and the data gives no detail on its size. No news headlines are available for this period.

Business overview

MNTECHCo is listed on KOSDAQ in the rubber and plastics sector. It was founded on 2002-08-01 and listed on 2007-10-01, with 31,009,999 shares outstanding and a market value of about ₩184.5B. Revenue was ₩458.2B in 2021 and ₩694.0B in 2023, then fell to ₩622.3B in 2024 and ₩538.5B in 2025. The data does not describe its products or customers.

Financial analysis

These figures come from filed financial statements. Trailing revenue to H1 2026 is ₩478.4B, with operating income of ₩14.6B (3.1% margin) and net income of ₩10.1B (2.1% margin). Return on equity is 3.4%.

Annually, revenue fell 10.3% in 2024 and 13.5% in 2025. Operating margin was 4.0% in 2024 and 3.9% in 2025, versus 5.2% in 2021. Net income was ₩22.1B in 2024 and ₩13.8B in 2025, with losses in 2022 and 2023. ROE fell from 8.5% in 2024 to 4.8% in 2025.

Liabilities to equity are 94.6%. Cash is ₩115.6B, borrowings are ₩42.3B, and trailing free cash flow is ₩11.9B.

Valuation

The stock trades at a P/E of 18.3, a P/B of 0.6, a P/S of 0.4 and a dividend yield of 1.2%. Enterprise value is ₩97.8B. EV/EBITDA is not available. Year-end P/B was 1.0 in 2025, 0.8 in 2024 and 1.2 in 2021, so the current 0.6 is below its own recent history. Year-end P/E was 22.7 in 2025 and 10.7 in 2024.

Peers listed show P/E of 3.2 to 21.2 and P/B of 0.2 to 2.7. Hankook Tire and Kumho Tire have P/B of 0.6 and P/E of 6.1 and 3.2. Pum-Tech Korea has a P/E of 21.2 and P/B of 2.7.

The DCF model gives a base estimate of ₩6,291 per share, with a bear case of ₩2,466 and a bull case of ₩13,423, at a 7.5% rate using trailing data to H1 2026. This is a model estimate based on the assumptions shown, not a target. The base case is about 5.7% above the ₩5,950 price, and the range is very wide.

Catalysts

  • The half-year report and a derivatives trading loss notice were both filed on 2026-08-14, and the loss details could affect how earnings are read.
  • Repeated 5%+ holding reports, most recently on 2026-10-02, show shareholder positions are changing.
  • Foreign ownership rose from 2.6% to 3.1% over 60 days, and foreigners were small net buyers over 20 days.
  • The next quarterly results will show whether revenue is stabilizing after two years of decline.

Risks

  • Revenue has fallen for two years, from ₩694.0B in 2023 to a trailing ₩478.4B.
  • Operating margin of 3.1% leaves little room if costs rise or sales weaken further.
  • The filed derivatives trading loss adds earnings uncertainty, and its amount is not in the data.
  • The shares are down 13.1% over three months and sit near the 52-week low, showing weak sentiment.
  • The model's bear-to-bull range of ₩2,466 to ₩13,423 shows the estimate is highly sensitive to assumptions.

Closing view

The evidence is mixed. Sales and profits have weakened, returns are low, and the share price has fallen sharply. Against that, the balance sheet holds net cash, the price is 0.6 times book value, and trailing cash flow is positive. The model's base estimate is close to the current price, which suggests the market is pricing in roughly current earnings, while the wide range shows how uncertain the outlook is. The derivatives loss detail and the next results are the main items to watch.

Model estimate of fair value

Bear
₩2,466
-58%
Base
₩6,291
+7%
Bull
₩13,423
+129%

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 7.5%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 24, 2026InitiationStart of coverage (reader request)MNTECHCo: Shares Down 40.2% Over a Year as Revenue Shrinks and Margins Stay Thin

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