Daechang대창

Daechang is a small brass-rod maker whose trailing profit is thin, its shares have fallen sharply, and its balance sheet carries heavy debt.

Daechang makes copper-alloy brass rod for uses such as semiconductors, electrical parts, autos and machinery, selling at home and abroad. On trailing figures to H1 2026 it had about ₩1.69T revenue, a 5% operating margin and a 1.3% net margin, but free cash flow was negative at about -₩19.5B. The share price is ₩997, roughly half its 52-week high of ₩2,095, and the data gives a DCF fair value of ₩5,248 (base case) though this model is not a forecast.

What stands out

• Trailing operating income of about ₩84.0B is well above 2025's ₩51.5B, but trailing net income of ₩22.6B is much lower than 2024's ₩4.4B for a full year only in part because of the period mix; net profit has been small or negative in several recent years.
• Liabilities are about 200% of equity, with borrowings of ₩97.0B against cash of ₩58.5B.
• Shares are down 24.1% over one year and 14.5% over one month, with the stock trading near ₩950 at its 52-week low.
• Trailing P/E is about 4 and P/B about 0.3, but the data gives no dividend yield, and the peer group trades at higher multiples.
• Foreign ownership is 4.1% and unchanged over 60 days; 20-day flows show net foreign selling of about ₩0.5B while retail bought about ₩0.6B.

What to watch

• The next periodic filings and the year-end 2026 results, to see whether operating margin holds and free cash flow turns positive.
• The May 2026 filing on the exercise of conversion, preemptive and exchange rights, which may affect the share count and dilution; the data gives no detail on its terms.
• Debt levels relative to cash, since the data shows borrowings well above cash. No recent news headlines were available in the data.