MKElectron엠케이전자

MKElectron's shares have rallied sharply over the past year, but profitability is thin and the balance sheet carries heavy debt.

MKElectron, a Korean maker of bonding wire and solder materials for chip packaging, reported trailing twelve-month revenue of ₩1.7T to H1 2026 with a slim 2.6% operating margin. Net income was ₩22B, and the company had ₩134B in cash against ₩284B in borrowings. The share price closed at ₩17,150 on 2026-10-16, up 67.8% over one year but well below its 52-week high of ₩37,000.

What stands out

• Revenue rose 19.9% in 2025 to ₩1.4T, but net income was only ₩1.3B, down from earlier losses in 2022 to 2024.
• Trailing free cash flow was negative at about ₩-220B, and liabilities are 152% of equity.
• The stated DCF base value is ₩80,707, far above the current price, but the data gives no detail on its assumptions beyond a 6.8% rate.
• Valuation looks modest on some measures (P/E 19.5, P/B 1.0, EV/EBITDA 9.3) compared with several peers shown in the data.
• Foreign ownership fell from 12.8% to 10.1% over about 60 days, while foreign investors were net sellers over the last 20 days.

What to watch

• Upcoming results and whether operating margin and free cash flow improve from current levels.
• Frequency of 5%+ holding reports and an exchange right exercise filed on 2026-10-02; the data does not explain their significance.
• Debt levels and refinancing, given borrowings of ₩284B against ₩134B of cash.