Mercury머큐리

Mercury returned to positive operating income in H1 2026 but still posted a large trailing net loss and negative free cash flow.

Mercury makes home telecom terminals such as routers and optical modems for Korean telecom operators, plus military satellite communications gear, IoT devices and optical cable. Trailing revenue is about ₩126.3B with a small operating profit of ₩1.9B, but a net loss of ₩5.7B and negative free cash flow of ₩3.1B. The share price is ₩4,250, well below its 52-week high of ₩12,750 and above its low of ₩2,480.

What stands out

• Trailing twelve-month operating margin is 1.5% after operating losses in 2024 and 2025, while the trailing net loss is ₩5.7B, so non-operating or other items weighed heavily.
• Borrowings of ₩28.2B exceed cash of ₩17.7B, and liabilities are 38.8% of equity, according to the filed financial statements.
• Revenue fell 7.8% in 2025 and 12.6% in 2024, and the company has not yet shown sustained growth in the filed figures.
• The fair value model in the data gives a base case of ₩1,981, below the current price of ₩4,250, with a bear case of ₩1,016 and a bull case of ₩3,869; this is a model output, not a forecast.
• Foreign ownership fell from 6.7% to 1.8% over the last 60 days, while the stock is up 34.9% over three months but down 14.9% over one month.
• Recent filings include a convertible bond issue, conversion-right exercises, a CEO change in March 2026, a transfer of tangible assets decision in August 2026, and supply contracts in April and July 2026.

What to watch

• The next filings and results, including the full-year 2026 report, to see whether operating profit holds and the net loss narrows.
• Follow-up on the August 2026 tangible asset transfer decision and any further convertible bond conversions, which could dilute shareholders.
• Free cash flow and borrowing levels, since the data shows negative cash flow and debt above cash.