Ask Warren

JONBUR Research · Initiation

Lumir · 474170 · Aerospace & Defense

Lumir: Loss-Making Defense Small Cap Trades Near Book Value After a Sharp Share Price Decline

Why this report

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

Lumir is a KOSDAQ-listed aerospace and defense company with a market value of about ₩98.0B, and its shares have fallen 39.9% over one year and 22.2% over one month. Filed financials show continued operating losses, a modest balance sheet, and a model estimate well below the current price.

Written Oct 22, 2026 · Data as of Oct 21, 2026 · 0 views

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

XfWATGr/in@

Thesis

The data supports a picture of a small company with thin earnings and a falling share price. Trailing twelve-month revenue to H1 2026 was ₩13.3B with an operating loss of ₩1.4B, and the operating margin was -10.5%. Revenue fell 26.0% in 2025, so growth is not visible in the annual numbers.

On the other side, leverage is low (liabilities to equity of 15.0%), cash of ₩23.7B exceeds borrowings of ₩8.4B, and free cash flow was positive at ₩2.2B. The stock trades at 1.0x book value, well below its year-end 2024 level of 3.0x and its year-end 2025 level of 2.6x.

The data does not show order backlog, contract wins or guidance, so the reasons for the earnings trend and the price decline are not available here. Foreign ownership fell from 4.5% to 3.3% over 60 days.

Business overview

Lumir is classified in the Aerospace & Defense sector and trades on KOSDAQ. It was founded on 2009-11-02 and listed on 2024-10-21, and it has 17,817,696 listed shares. The CEO is listed as 남명용.

At ₩5,500 per share the market capitalisation is ₩98.0B and enterprise value is ₩82.7B. The 52-week range is ₩4,040 to ₩22,650, so the price sits about 75.7% below the high and about 36.1% above the low. The company is small compared with the listed peers, the smallest of which, Samyang Comtech, has a market value of ₩281.1B.

Financial analysis

These figures come from filed financial statements. Revenue was ₩14.3B in 2024 and ₩10.6B in 2025 (-26.0%). The operating loss was ₩1.2B in 2024 (margin -8.4%) and ₩594M in 2025 (margin -5.6%). Net income was a loss of ₩1.1B in 2024 and a small profit of ₩46M in 2025, with ROE of -1.9% and 0.1% respectively.

Over the twelve months to H1 2026, revenue was ₩13.3B, operating income was -₩1.4B, and net income was -₩963M (net margin -7.3%, ROE -1.2%). Cash was ₩23.7B, borrowings were ₩8.4B, and free cash flow was ₩2.2B.

Filings show convertible bond issuance in spring 2026 (1st and 2nd series) and a decision on issuing debt securities recognised as capital, which may relate to the cash position. These filings are listed only by title, so terms are not available here.

Valuation

The price-to-book ratio is 1.0x and price-to-sales is 7.4x. P/E and EV/EBITDA cannot be calculated because earnings are negative. The dividend yield is 0.0%. Year-end P/B was 3.0x in 2024 and 2.6x in 2025, so the current multiple is lower than the company's own history.

Peers show P/E from 9.9x to 65.6x and P/B from 1.7x to 6.9x, including Hanwha Aerospace (P/E 20.8x, P/B 3.5x) and Samyang Comtech (P/E 9.9x, P/B 1.7x). Lumir's P/B is below all of these peers, though it is loss-making and far smaller.

The valuation model uses a 5-year discounted cash flow at a 7.5% rate on TTM data to H1 2026. It gives a base case of ₩156 per share, with ₩268 for the bear case and ₩35 for the bull case. The bear and bull values appear reversed relative to their labels, which suggests the output is unreliable. This is a model estimate based on the assumptions shown, not a target, and it is far below the ₩5,500 share price, mainly because the company's cash flows are small and uneven.

Catalysts

  • Filings on 2026-08-31 and 2026-09-30 are corrected notices of new facility investment, which may show how the company is deploying capital.
  • The half-year report filed on 2026-08-14 gives the latest earnings base against which the next report can be compared.
  • Convertible bond issues in May 2026 (1st and 2nd series) could add to the share count if converted, which is relevant to the share price.
  • A notice of stock purchase option grant was amended on 2026-07-22, and a 5%+ holding report was filed on 2026-05-15, both relevant to ownership and incentives.
  • Over the past 20 days retail investors were net buyers of about ₩795M while foreigners were net sellers of about ₩921M, so a change in this flow pattern could matter.

Risks

  • The company has recorded operating losses in both 2024 and 2025 and in the trailing twelve months, with an operating margin of -10.5%.
  • Revenue fell 26.0% in 2025 and the trailing figure of ₩13.3B remains below the 2024 level of ₩14.3B.
  • Convertible bond issuance could dilute existing shareholders if the bonds are converted.
  • The share price fell 22.2% in one month and 39.9% in one year, and foreign ownership dropped to 3.3% from 4.5%.
  • The model estimate of ₩156 per share is far below the market price, and no news headlines or order data are available to explain the gap.

Closing view

The evidence is mixed. Balance sheet strength, positive free cash flow and a P/B of 1.0x sit alongside persistent operating losses, falling revenue, convertible bond financing and a model estimate far below the market price. The available data does not explain the recent price weakness or show future orders, so any view depends on information not included here. This report is not a recommendation.

Model estimate of fair value

Bear
₩268
-95%
Base
₩156
-97%
Bull
₩35
-99%

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 22, 2026InitiationStart of coverage (reader request)Lumir: Loss-Making Defense Small Cap Trades Near Book Value After a Sharp Share Price Decline

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