Seoam Machinery Industry서암기계공업

Seoam Machinery is a small, low-margin parts maker whose profit has recovered on thin margins, while its shares have fallen about 22% over the past year.

Seoam Machinery makes gears, chucks, cylinders and couplings to order, mainly for machine tool and industrial equipment makers, with a significant share of sales to Japan. For the twelve months to H1 2026 it reported revenue of about ₩49.8B, operating income of about ₩1.0B and net income of about ₩1.8B, with a balance sheet showing ₩9.2B in cash and no borrowings listed. The share price is ₩3,085, roughly 42% of its 52-week high, with a market value of about ₩38.9B.

What stands out

• Revenue has moved around ₩42B to ₩50B since 2021, with 2025 at ₩46.5B after a 9.7% rise, but operating margin is thin, at 0.1% in 2025 and 2.1% on a trailing basis.
• Net income is well above operating income in the trailing figures, so non-operating items or other income appear to matter; the data does not break this down.
• Trailing free cash flow is slightly negative at about -₩0.1B, and return on equity is 2.8%.
• Valuation metrics are modest: P/E of 21.1, P/B of 0.6 and a 0.3% dividend yield. The company's own DCF-based fair value model gives a base of ₩2,671, below the current price, with a bear of ₩1,444 and a bull of ₩4,818.
• Filings show a cash dividend decision in February 2026, an AGM in March 2026 and a half-year report for June 2026 filed in August. No news headlines were available in the data.

What to watch

• The next quarterly results and whether operating margin improves from its thin level.
• Whether free cash flow turns positive and how the ₩9.2B cash position is used, including dividends.
• Foreign ownership is only 1.7%, and sales depend heavily on Japan and on machine tool and industrial demand; the data does not give further detail on these risks.