Hwashin Precision화신정공

Hwashin Precision has returned to a profit on a strong trailing twelve months, but its share price has fallen sharply over the past three months.

Hwashin Precision is a South Korean auto parts maker selling chassis parts, precision machined parts and aftermarket parts, mostly to domestic automakers and their affiliates. Trailing results to H1 2026 show revenue of ₩415B, operating income of ₩27B and net income of ₩22B, well above its 2024 and 2025 full-year levels. The share price is ₩3,040, down about 21% over one month and 24% over three months, though still up 133% over one year.

What stands out

• Trailing operating margin is 6.5% and net margin 5.4%, compared with 3.1% and 2025 operating margin of about 3.1% for the full year 2025.
• 2025 revenue was ₩379B, up 17.7%, while 2024 revenue had fallen 10.5%.
• Price-based valuation looks low at a P/E of 4.8 and P/B of 0.8, and the dividend yield is 2.5%, but the data gives no analyst ratings or price targets.
• The DCF fair value model gives a base of ₩5,536, a bear case of ₩1,976 and a bull case of ₩11,861, which are model outputs, not forecasts.
• Foreign ownership fell from 3.8% to 3.3% over 60 days, while retail investors were net sellers of about ₩2.5B over 20 days.
• Balance sheet shows cash of ₩47B against borrowings of ₩15B, with liabilities at 54.2% of equity and trailing free cash flow of ₩7.7B.

What to watch

• The Q3 2026 quarterly report, which is not yet in the data, will show whether the recent profit trend continues.
• The shares are far below their 52-week high of ₩7,880, and the data does not explain the recent price decline.
• The company's recent filings include a value-up plan and a share cancellation decision, and their follow-through is worth tracking.