YulChon율촌

YulChon's stock has fallen sharply over the past year, while H1 2026 profit stayed positive but free cash flow was negative.

YulChon is a KOSDAQ-listed maker of precision drawn steel pipes, mostly for automotive parts, with export plants in Mexico and a planned plant in Poland. On a trailing basis to H1 2026 it reported revenue of about ₩82.9B... to be precise, ₩82.9B in revenue, ₩5.4B in operating income and ₩3.3B in net income, but free cash flow was -₩21.4B and borrowings were ₩63.3B against ₩14.5B of cash. The share price closed at ₩993 on 2026-10-23, down 21.6% over one year and well below its 52-week high of ₩2,325.

What stands out

• Trailing operating margin is 6.5% and net margin is 4.0%, broadly steady with the 2025 full-year figures (6.4% and about 4.1%).
• Revenue grew 1.4% in 2025 after 7.6% growth in 2024, so top-line growth has slowed.
• Liabilities are 128.5% of equity, and borrowings of ₩63.3B are large relative to the ₩14.5B cash balance.
• The stock trades at a P/E of 7.2 and P/B of 0.4, below the peer P/Es listed in the data, but the data-provided DCF base value of ₩908 sits close to the current price.
• Recent filings include a buyback trust that was terminated in August 2026, a CEO change in June 2026, and a third-party collateral decision in September 2026. No news headlines were provided.

What to watch

• Whether free cash flow turns positive, given the trailing figure of -₩21.4B and high borrowings.
• Filings on the Poland plant, the collateral arrangement for a third party, and any further amendments to the H1 2026 half-year report.
• Foreign ownership is low at 0.8% and the 20-day flows were net foreign selling of about ₩60.6M; the data does not explain the reasons behind these flows.