Hwashin화신

Hwashin's trailing earnings are thinner than last year, with a free cash outflow and a share price down sharply over the past year.

Hwashin is a Korean auto parts maker supplying chassis, body and EV battery case parts mainly to Hyundai Kia affiliates. For the twelve months to H1 2026, revenue was ₩2.0T with operating income of ₩68B (3.4% margin), down from ₩102B in 2025, and free cash flow was negative at about -₩167B. The shares closed at ₩7,070 on 2026-10-21, down 18.9% over one year, with a low P/E and P/B on the reported figures.

What stands out

• Trailing operating margin is 3.4%, below the 5.2% reported for 2025, though revenue on a trailing basis (₩2.0T) is above the 2025 total (₩1.96T).
• Borrowings of ₩403B exceed cash of ₩268B, and liabilities are about 2 times equity, so the balance sheet carries meaningful debt.
• Reported valuation is low: P/E 3.4, P/B 0.4, and a 2.4% dividend yield, while the DCF model's base value is ₩14,518, well above the current price (the model's bear value is shown as 0).
• Foreign ownership fell from 2.6% to 1.5% over about 60 days, while retail investors were net sellers over the last 20 days.
• Filings in October 2026 include amendments to the half-year report and treasury share sale decision, plus a corrected treasury stock disposal report. The data does not explain the reasons for these amendments.

What to watch

• The corrected and amended filings from 2026-10-15 and what they change in the half-year figures or treasury share sale.
• Whether free cash flow turns positive and whether borrowings are reduced relative to cash.
• The next quarterly or annual report; the data includes no news headlines and no forecasts.