SC Engineering에쓰씨엔지니어링

SC Engineering is still loss-making on a trailing basis, with its shares down sharply over the past year and a small foreign stake.

SC Engineering is a Korean industrial plant contractor whose core business is engineering, procurement and construction work, supplemented by a collagen medical materials unit and a health food business. On trailing figures to H1 2026 it reported revenue of ₩126B, an operating loss of ₩10B and a net loss of ₩11B, with negative free cash flow of ₩49B. The share price is ₩974, against a 52-week range of ₩880 to ₩1,958, and the company pays no dividend.

What stands out

• Trailing revenue is ₩126B, but operating margin is -8% and net margin is -9.1%, so the business is not yet profitable on this basis.
• Full-year 2025 revenue fell 4.2% to ₩172B and the company posted an operating loss, after a profitable 2024 when revenue rose 32.3%.
• Borrowings of ₩39B against cash of ₩12B and a liabilities-to-equity ratio of 179.6% point to a stretched balance sheet.
• The stock is down 25.2% over one year but up 3.4% over three months; price-to-book is 0.9 and price-to-sales is 0.3, though no earnings-based multiple is available because of losses.
• Recent news covers a push into healthcare through the 'Switch On Diet' product and entry into the biodiesel plant market, but the data does not show revenue or profit from either.

What to watch

• The next filed results, particularly whether operating income turns positive again after the H1 2026 loss.
• Free cash flow and borrowing levels, given the negative cash flow and debt relative to cash.
• Foreign ownership, which is low at 1.3% and slipped from 1.4% over the last 60 days, and any further filings on share or warrant conversion price adjustments.