Device디바이스

Device's profits have surged on strong first-half 2026 results, but the share price is well below its 52-week high and free cash flow is negative.

Device makes contamination control equipment for semiconductor and OLED display manufacturers. On trailing twelve-month figures to H1 2026 it reports revenue of ₩120.7B, operating income of ₩35.9B and net income of ₩35.3B, against a much weaker 2024 and 2023. The share price is ₩10,500, down 16.1% over three months but up 58.5% over one year.

What stands out

• Trailing operating margin is 29.8% and net margin is 29.3%, compared with 9.0% operating margin in 2024 and 7.5% in 2023.
• Trailing free cash flow is negative at about ₩6.1B, and borrowings of ₩21.5B exceed cash of ₩13.3B.
• Valuation metrics are low on trailing numbers: P/E about 4.1, P/B about 0.8, and a 6.2% dividend yield.
• The company's DCF-based fair value estimate is ₩5,142 in the base case, well below the current price, with a bear case of ₩160 and a bull case of ₩13,894.
• Recent filings include amended major sales or supply contracts on October 19 and 20, 2026, but the data does not give their terms or values.
• Foreign ownership fell from 6.6% to 5.0% over 60 days, and foreign investors were net sellers over the last 20 days.

What to watch

• Next scheduled results and whether margins hold after the strong H1 2026 period, since the 2025 annual figures were much lower than the trailing numbers.
• Details of the amended supply contracts once they are clarified in the filings.
• Free cash flow and debt levels, given the negative trailing free cash flow and the gap between borrowings and cash.