Smotronic스모트로닉

Smotronic's trailing margins are thin and it is still loss-making at the net line, and a disclosure-failure designation issue has just been deferred.

On trailing figures to H1 2026, Smotronic had revenue of ₩387B, an operating margin of 1.4% and a net loss of ₩0.7B, after a ₩10.6B net loss in 2025. Shares closed at ₩2,095, down 27.8% over one year, and the market value is about ₩81B. The profile given describes a different company name (Woosu Automotive Industries), so the company description should be checked before relying on it.

What stands out

• Operating income recovered to ₩5.4B on a trailing basis, against ₩0.5B in 2025, but net income is still negative.
• Borrowings of ₩15.2B exceed cash of ₩12.8B, and liabilities are about 207% of equity.
• Trailing free cash flow was ₩2.4B, a positive figure, while return on equity is -0.8%.
• Filings in October 2026 include a notice that the company was designated an unfaithful disclosure company for five cases of disclosure failure, followed on 27 October by a decision not to designate it, with designation deferred.
• The company's internal DCF model gives a base value of ₩438 and a bull value of ₩4,385, both far from the current price; the bear value is shown as zero. Investor flows over 20 days were small, with foreign investors' ownership at 1.8%.

What to watch

• Whether the deferred unfaithful-disclosure designation is resolved and what the company says about the five disclosure failures.
• Next results, to see if the trailing operating profit turns into a net profit and whether debt falls from current levels.
• The September 2026 debt guarantee to a third party and the share sale in another company, both of which were amended, for any further changes.