Hanchang Industry한창산업

Hanchang Industry is a small, lowly valued Korean materials maker whose profits have fallen sharply from 2024 levels, with trailing free cash flow negative.

Hanchang makes zinc dust, zinc phosphate, lithium bromide and zeolite, with a large share of sales exported. Trailing twelve-month revenue is about ₩92.6B with operating income of ₩3.1B, well below 2024 and 2025 levels. The shares trade at a 7.6 P/E and 0.4 P/B, and the company's filings show a recent buyback trust that was terminated in October 2026.

What stands out

• Trailing revenue of ₩92.6B is below 2025's ₩98.6B, and operating margin has slipped from 8.0% in 2025 to 3.4% on a trailing basis.
• Trailing free cash flow is negative at about -₩1.7B, while the company holds ₩3.0B in cash against ₩2.1B in borrowings.
• The shares are down 29.6% over one year and trade near the lower part of their 52-week range of ₩4,230 to ₩7,450.
• A discounted cash flow model in the data gives a base value of ₩11,199, well above the ₩5,220 close, but this is a model output rather than a forecast, and its bear case is ₩5,761.
• Dividend yield is listed at 4%, and foreign ownership edged up to 7.5% from 7.4% over sixty days.

What to watch

• Next quarterly and annual results, to see whether margins recover from the trailing 3.4% operating margin and free cash flow turns positive.
• Follow-up filings on the treasury share buyback trust, since the data shows its termination in October 2026 with a status report filed the same day.
• Export demand and product pricing, which the data does not detail but which drive a large share of revenue.