HS Valve화성밸브

HS Valve swung to a trailing operating loss in H1 2026 after profitable years, while its shares have risen sharply over three months but are still down over one year.

HS Valve makes piping valves for gas, chemical, petroleum and household uses, selling mainly through dealers and city gas contractors, with some exports. Trailing revenue to H1 2026 was about ₩86.4B, but operating income was negative at about -₩1.5B, although net income was slightly positive at about ₩0.4B. Free cash flow was about -₩5.9B over the same period, and the data does not show any borrowings.

What stands out

• Revenue fell 10.8% in 2025 to about ₩81.4B, and the company posted a net loss of about ₩2.0B that year after profits in 2021 to 2024.
• The trailing operating margin is -1.7%, while the net margin is 0.5%, so the small net profit does not come from core operations in the data provided.
• The share price closed at ₩7,360 on 16 October 2026, up 22.3% over one month and 39.1% over three months, but down 20% over one year and well below its 52-week high of ₩11,680.
• The DCF-based fair value range in the data is ₩1,405 to ₩8,095 with a base of ₩3,824, which sits well below the current price; the model's assumptions are not described in the data.
• Valuation metrics are stretched on earnings, with a trailing P/E of about 188 and no dividend, while the P/B is around 0.8 and cash is about ₩5.1B.
• Foreign ownership eased from 3.8% to 3.4% over 60 days, and 20-day flows show foreign selling against retail buying.

What to watch

• The Q3 2026 quarterly report and the full-year 2026 results, to see whether operating income returns to profit.
• Whether free cash flow turns positive, given the trailing figure of about -₩5.9B.
• Filings on major shareholder holdings and insider shareholdings, which have appeared several times in 2026; the data includes no news headlines to explain recent price moves.