Namhae Chemical남해화학

Namhae Chemical's share price has fallen sharply over the past year, while its profit margins remain thin and free cash flow is negative.

Namhae Chemical is a Korean fertilizer and chemicals maker with a small profit margin and a share price of ₩5,550, down 19.3% over one year and near the low of its 52-week range. Trailing results to H1 2026 show revenue of ₩1.74T but operating income of only ₩21B and negative free cash flow of ₩63B. The data includes no recent news headlines, so the reasons for the share price decline are not explained here.

What stands out

• Trailing revenue is ₩1.74T, but operating margin is 1.2% and net margin is 0.7%, so profitability is thin.
• Full-year 2025 revenue rose 5.6% to ₩1.60T, with operating income of ₩43B, up from ₩36B in 2024.
• Borrowings of ₩423B exceed cash of ₩215B, and liabilities are 102% of equity.
• The company's own discounted cash flow estimate is ₩1,346 per share, well below the current price, but the bull case shown is ₩19,129, a very wide range.
• Foreign ownership fell from 3.2% to 2.7% over 60 days, while retail investors were net sellers over the last 20 days.

What to watch

• The next quarterly results and whether margins recover from the trailing levels.
• Free cash flow and borrowing levels, given the negative cash flow and rising short-term borrowings disclosed in May 2026.
• Any new filings on large sales or supply contracts, related-party transactions or financial transactions with affiliated companies.