Korea Refractories한국내화

Korea Refractories is back to a thin profit on trailing numbers, but its shares have fallen about 31% over the past year.

Korea Refractories makes heat-resistant ceramic materials for heavy industry such as steelmaking, and runs a construction arm, Ilkwang E&C. On trailing twelve-month figures to H1 2026 it posted revenue of ₩388B, an operating margin of 2.3% and net income of about ₩7.8B, after a loss-making 2025. The share price of ₩1,521 sits well below its 52-week high of ₩2,270.

What stands out

• Trailing revenue is about ₩388B, a small decline from ₩406B in 2025, and 2025 net income was negative at roughly -₩21.8B.
• Trailing operating margin of 2.3% and net margin of 2% are thin, and return on equity is 4.3%.
• Trailing free cash flow is negative at about -₩8.0B, while cash is ₩4.8B against ₩32B of borrowings.
• The stock trades at about 8 times earnings and 0.3 times book value, below most listed peers shown, but the data does not include analyst ratings or price targets.
• Foreign ownership fell from 0.6% to 0.5% over the last 60 days, and foreign investors were net sellers over the past 20 days.

What to watch

• The full-year 2026 results and the next quarterly report, to see whether the H1 2026 profit recovery holds.
• Ongoing filings on changes in the largest shareholder's holdings, which appeared several times in 2026.
• Cash flow and debt levels, since trailing free cash flow is negative and borrowings exceed cash; the data does not name specific risks beyond these figures.