Yeonghwa Metal영화금속

Yeonghwa Metal is profitable again on a trailing basis, but its share price is still well below its 52-week high and its debt is high relative to equity.

Yeonghwa Metal makes castings and automotive parts, mainly through plants in Gyeongnam Province. Trailing results to H1 2026 show revenue of about ₩352B, operating income of about ₩12.6B and net income of about ₩12.3B, after losses in 2021 and 2022. The company carries about ₩64.9B of borrowings against ₩5.1B of cash, and the data gives no news coverage for the period.

What stands out

• Revenue grew 16.5% in 2025 to about ₩351B, but 2025 operating margin fell to 4.3% and trailing margin is 3.6%.
• Trailing net income of about ₩12.3B gives a 15.5% ROE, though liabilities are 179% of equity.
• Valuation metrics are low: trailing P/E about 3.2, P/B about 0.5 and a 4.3% dividend yield, against peers such as Hyundai Mobis at P/E 8.2.
• The share price rose 13.3% over one month but fell 12.8% over one year and trades about 32% below its 52-week high of ₩5,975.
• Foreign ownership fell from 2.1% to 1.3% over 60 days, and 20-day flows were net negative across foreign, institutional and retail investors.

What to watch

• Next periodic results and whether margins hold near the trailing 3.6% level.
• Filings on the largest shareholder's holdings and insider and 5%+ holding reports, which were frequent in October 2026.
• The debt load: borrowings of about ₩64.9B are large relative to cash and equity, and the data does not describe a repayment plan.