Inhwa Precision인화정공

Inhwa Precision's trailing profit is strong on paper, but the share price has fallen about 47% over the past year and cash flow is negative.

Inhwa Precision makes marine engine parts, metal forming machinery and metal structural products. On the trailing twelve months to H1 2026 it reported revenue of ₩112B, operating income of ₩17.8B and net income of ₩24.8B, with free cash flow of -₩18.3B. The shares closed at ₩6,340 on 2026-10-26, well below the 52-week high of ₩17,000.

What stands out

• Net income of ₩24.8B is well above operating income of ₩17.8B, so the filings suggest non-operating items contributed to profit; the data does not explain their nature.
• Free cash flow is -₩18.3B on a trailing basis, while borrowings are ₩45.6B against cash of ₩17.6B.
• The 2025 annual figures show revenue of ₩108B, up 16.4%, and operating margin of 14.4%, compared with 11.1% in 2024.
• Valuation metrics are low against most listed Korean shipbuilding peers, with P/E of 11.7 and P/B of 0.8, and a stated dividend yield of 11.8%.
• Recent filings include a buyback trust contract signed on 2026-10-22 and a corporate value-up plan dated 2026-10-20; the data contains no news headlines.

What to watch

• The half-year and next quarterly filings, to see whether operating cash flow turns positive and whether the gap between operating and net income persists.
• Progress on the buyback trust contract and any further share cancellation or shareholder return filings.
• Foreign ownership has slipped from 1.1% to 0.9% over 60 days, and the data does not give a reason; the DCF fair value range of ₩2,820 to ₩5,260 sits below the current price.