Daou Technology다우기술

Daou Technology's reported revenue has grown fast, but its shares have fallen sharply and its debt and negative free cash flow are heavy.

The shares closed at ₩31,850 on 2026-10-26, near the bottom of their 52-week range of ₩31,500 to ₩62,300, after falling 18.7% over one month. Trailing twelve-month revenue to H1 2026 was ₩34.8T with operating income of ₩2.24T and net income of ₩749B, but borrowings of ₩45.3T against cash of ₩3.1T and free cash flow of -₩12.0T stand out. The company profile is not included in the data, so the business description is limited to the figures and filings.

What stands out

• Revenue rose 50.5% in 2025 to ₩17.5T, but operating margin slipped from 10.1% in 2024 to 8.9% in 2025.
• Trailing liabilities-to-equity is 1,212%, and free cash flow is negative ₩12.0T, so the balance sheet relies heavily on borrowings.
• The stock trades at 1.8 times earnings and 0.4 times book, with a 5.7% dividend yield, while the data's discounted cash flow model gives a base value far above the current price.
• Recent headlines report Daou Technology as preferred bidder to acquire the newspaper JoongAng Ilbo in a consortium with CJ, and a UK activist fund is reported to oppose the deal.
• Foreign ownership is 27.4%, down slightly from 27.6% sixty days earlier, and institutions were net sellers over the last 20 days.

What to watch

• Whether the JoongAng Ilbo acquisition proceeds and how the reported opposition from the activist fund develops.
• The company's response to the exchange inquiry about a news report or price move, filed 2026-10-20, and the major management matter filed the same day.
• Half-year and full-year results, and whether debt levels and negative free cash flow improve.