CHEMTRONICSCo켐트로닉스

Chemtronics is still profitable on a trailing basis but margins have narrowed, the share price is down sharply over a year, and free cash flow is negative.

Chemtronics, a KOSDAQ-listed group spanning semiconductor materials, electronics modules, automotive electronics and chemical distribution, reported trailing revenue of about ₩690B to H1 2026 with an operating margin of 4% and a net margin of 1.4%. The share price closed at ₩22,000 on 23 October 2026, down 33.2% over one year and about 55% below its 52-week high of ₩48,900. Borrowings of ₩409B well exceed cash of ₩57B, and trailing free cash flow is negative at about -₩109B.

What stands out

• Revenue grew 10.8% in 2025 to about ₩637B, but operating income fell from ₩37B in 2024 to ₩23B, and net income dropped from ₩21B to ₩10B.
• Trailing net income of ₩9.5B gives a P/E of 38.8, while the P/B of 1.6 and ROE of 4.3% suggest modest returns on book equity.
• Liabilities are 213% of equity, and borrowings are much larger than cash, so balance sheet leverage is a key feature of the data.
• Recent filings include a corporate value-up plan (March 2026), a conversion of redeemable convertible preferred shares (March 2026) and a decision on a debt guarantee for another party (May 2026).
• Foreign ownership rose slightly from 7.4% to 7.7% over about 60 days, while retail investors were net sellers of about ₩3.0B over the last 20 days.

What to watch

• Next quarterly and annual results, to see whether operating margin recovers from the trailing 4% and whether free cash flow turns positive.
• Details of the debt guarantee for another party and any further changes to borrowings, given the high leverage.
• The news flow is empty in the data provided, so the reasons behind the one-year share price decline are not clear from the information available.