Daewon Chemical대원화성

Daewon Chemical is a small synthetic leather maker whose shares have fallen sharply, with thin profits and heavy borrowing.

Daewon Chemical makes synthetic leather for shoes, balls and car interiors, mostly sold abroad, and also refines DMF solvent from that process. Its trailing twelve-month figures to H1 2026 show revenue of about ₩131.9B, operating income of only ₩0.2B and net income of ₩3.9B, after heavy losses in 2021 to 2024. Borrowings of ₩76.3B sit well above cash of ₩8.0B, and free cash flow is negative.

What stands out

• Trailing revenue is about ₩131.9B, but operating margin is just 0.2%, so profit depends on items beyond core operations.
• 2025 was the first profitable year in the annual data shown, with net income of ₩3.5B after losses of about ₩7B to ₩12B in 2021 to 2024.
• Liabilities are 151.2% of equity and borrowings are ₩76.3B, against cash of ₩8.0B.
• Shares closed at ₩1,485, down 65.1% over one year and 46.8% over three months, with a 52-week range of ₩1,347 to about ₩4,990.
• An October 2026 filing reports a decision to cancel all treasury shares the company holds, and the news coverage presents this as a shareholder-value step.

What to watch

• Whether the share cancellation is carried out and how it affects the share count, which is 8.25 million listed shares.
• Next results and whether operating income stays positive, given the thin margin and negative free cash flow.
• Debt levels and refinancing, plus the August 2026 property sale and the Investment Caution Notice filed that month, since the data does not explain either in detail.