Daejoo Electronic Materials대주전자재료

Daejoo Electronic Materials has recovered strongly in price, but its 2026 trailing profits are thin and it is raising debt-like funding.

The company makes electronic materials such as conductive pastes, solar electrode materials and battery anode materials. On trailing twelve months to H1 2026 it reported revenue of ₩328.7B, operating income of ₩26.6B and net income of ₩10.1B, with a 3.1% net margin and free cash flow of -₩19.0B. The shares closed at ₩91,800 on 2026-10-26, well below the 52-week high of ₩183,300 but far above the low of ₩58,900.

What stands out

• Trailing revenue of ₩328.7B is well above full-year 2025 revenue of ₩254.6B, but net income of ₩10.1B is well below 2025's ₩20.7B and 2024's ₩36.9B.
• Full-year operating margin fell from 13.4% in 2024 to 8.1% in 2025, and trailing ROE is 4%.
• Borrowings of ₩100.1B against cash of ₩38.9B, with liabilities at 138.4% of equity, and negative trailing free cash flow.
• Valuation is high on earnings: trailing P/E of 142.9 and P/B of 5.1, against a DCF base value in the data of ₩5,963, far below the share price.
• Foreign ownership fell from 16.4% to 11.2% over about 60 days, while 20-day institutional flows were positive and foreign flows negative.

What to watch

• A KRW 70B convertible bond issue was announced on 2026-10-14, with several conversion price adjustments filed since; the dilution and terms are not fully set out in the data.
• The next periodic results and whether margins recover from the 2026 trailing level; the data does not give a forward earnings schedule.
• Momentum-driven news such as the SpaceX data center supply chain report is not confirmed by company filings in the data, so treat it cautiously.