Hwacheon Machinery화천기계

Hwacheon Machinery posted a small operating loss over the trailing twelve months to H1 2026, though it still reported a net profit, and its shares are down 34% over the year.

Hwacheon Machinery, a Korean maker of CNC machine tools and automotive cylinder block parts, reported trailing revenue of ₩204.8B to H1 2026. Operating income was slightly negative at about -₩0.6B, while net income was ₩5.5B and free cash flow was -₩19.9B. At ₩2,980 per share, the market value is about ₩65.6B, with the stock trading well below its 52-week high of ₩6,760.

What stands out

• Revenue fell 7.7% in 2025 to ₩214.5B after a 43.6% jump in 2024, so the top line has been volatile.
• Operating margin was near break-even in 2025 (0.1%) and slightly negative on a trailing basis (-0.3%), while net income stayed positive, partly because of non-operating items the data does not break down.
• Cash of ₩11.8B against borrowings of ₩3.0B; liabilities-to-equity is 33.1%.
• Recent filings include preliminary earnings for H1 2026 (Aug 11) and the half-year report (Aug 14), plus a filed change of 30% or more in revenue or profit (Feb 11).
• Valuation metrics shown are a P/E of about 12 and P/B of 0.5, with a 0.7% dividend yield; foreign ownership is 4.2%, little changed over 60 days. No news headlines were included in the data.

What to watch

• The next filings and results after the H1 2026 half-year report, especially whether operating income turns sustainably positive.
• Free cash flow, which was negative at -₩19.9B on a trailing basis, and how the company funds it given its cash position.
• The data does not include analyst ratings, forecasts or a fair value estimate, so forward expectations cannot be assessed from it.