Sebo Manufacturing Engineering세보엠이씨

Sebo M&E is profitable and cheap on earnings, but its revenue has been shrinking and the share price has fallen over the past month.

Sebo M&E is a Korean mechanical facilities contractor that reported trailing twelve-month revenue of ₩898.8B and net income of ₩45.3B through H1 2026. Revenue fell in 2024 and 2025 after a large jump in 2022, while profitability has improved. The shares closed at ₩20,550 on 2026-10-23, about 15% lower over one month but up 57% over one year.

What stands out

• Trailing net income of ₩45.3B is well above 2025 full-year net income of ₩35.6B, with a net margin of 5% and ROE of 16.8%.
• Annual revenue fell 9.3% in 2025 and 9.5% in 2024, so top-line growth has not returned in the data.
• The company reported cash of ₩48.2B against borrowings of ₩2.0B, and trailing free cash flow of ₩47.2B.
• Valuation metrics are low: P/E 4.6, P/B 0.7, dividend yield 2.9%. The company's own DCF base value is ₩42,855, but this is a model output, not a forecast.
• Recent filings are mostly major sales or supply contracts, including a ₩97.0B Gihung mechanical facilities contract from Samsung C&T reported on 2026-10-13, plus several amendments to earlier contract filings.

What to watch

• The H1 2026 half-year report was filed on 2026-08-14 and the data does not include segment detail or the next results date; check upcoming filings.
• Several recent contract filings were amended, which may warrant reading the amendments to see what changed.
• Foreign ownership rose from 12% to 13.1% over 60 days, while retail investors were net sellers over 20 days; the data does not explain the reasons.