Iljin Diamond일진다이아

Iljin Diamond is back to a small profit on a trailing basis, but its shares have fallen about 42% over the past year and free cash flow is negative.

Iljin Diamond makes synthetic industrial diamonds and tungsten carbide products for cutting and grinding tools, selling mostly to export markets. On trailing figures to H1 2026 it reported revenue of about ₩197B, operating income of about ₩4.9B and net income of about ₩14.6B, after operating losses in 2023 to 2025. The shares closed at ₩8,560 on 26 October 2026, well below their 52-week high of ₩16,940.

What stands out

• Trailing operating margin is 2.5%, against operating losses in each of 2023, 2024 and 2025, so profitability is recovering but still thin.
• Net income (₩14.6B) is much larger than operating income, so the profit figure relies on items other than core operations; the data does not explain them.
• Free cash flow is negative at about -₩11.4B on a trailing basis, while the company holds about ₩29.7B cash against ₩9B of borrowings.
• The stock trades at about 8.3 times earnings and 0.3 times book value, with a 3.5% dividend yield; the data's DCF base value is ₩14,242, but this is a model output, not a forecast.
• Foreign ownership fell from 4.7% to 4.0% over 60 days, and foreign investors were net sellers over the last 20 days.

What to watch

• The full-year 2026 results and the next quarterly report, to see whether the operating profit recovery holds.
• Whether free cash flow turns positive, given the recent negative figure and the company's borrowings.
• Follow-up to the corporate value-up plan filed in April 2026; the data does not say what specific measures it contains.