Sun Kwang선광

Sun Kwang is a profitable logistics firm with strong margins and a low valuation, but its free cash flow is negative on a trailing basis.

Sun Kwang, a Korean port cargo handling and logistics company, reported trailing twelve-month revenue of ₩193B and operating income of ₩47B through H1 2026, with a 24.3% operating margin. Its shares closed at ₩19,560 on 20 October 2026, about 36% below the 52-week high of ₩30,450, and the stock trades at roughly 2.8 times earnings and 0.3 times book value. Trailing free cash flow was negative at about -₩8.9B.

What stands out

• Revenue grew about 2% in 2025 to ₩190B, and operating margin rose to 21.7% from 19.5% in 2024, though both remain below the 2023 operating income of ₩39B.
• Trailing net income of ₩46B is close to operating income, and trailing ROE is 10.8%.
• Borrowings of ₩83B exceed cash of ₩47B, and liabilities are 61.3% of equity.
• Trailing free cash flow is negative at about -₩8.9B, which the data does not explain further.
• Foreign ownership is 7.9% and unchanged over 60 days, and 20-day foreign net flows are slightly negative, while institutional and retail flows are small and positive.

What to watch

• The next full-year or quarterly results, to see whether margins hold and free cash flow turns positive.
• Further filings on 5%+ holdings and insider shareholding, which appeared frequently in July and September 2026.
• The internal fair value model gives a base of ₩92,948, a bear of ₩46,458 and a bull of ₩186,635, all highly sensitive to its assumptions and not a forecast; the data does not name specific business risks beyond these figures.