Hanjoo Light Metal한주라이트메탈

Hanjoo Light Metal is near break-even on operating profit, still loss-making after tax, and its shares have fallen sharply over the past year.

Hanjoo Light Metal, an Ulsan-based maker of aluminum parts for electric and other vehicles, reported trailing twelve-month revenue of about ₩260B to H1 2026 but only ₩0.8B of operating income and a ₩1.9B net loss. Its balance sheet carries liabilities of about 3.5 times equity, and free cash flow over the same period was negative at about -₩21.9B. At ₩1,187 the shares sit near the low end of their 52-week range of ₩1,096 to ₩3,300.

What stands out

• Revenue has been roughly flat to modestly up: ₩259.5B in 2025 versus ₩250.8B in 2024, after a 2023 operating loss of about ₩13.6B that has since narrowed to a small profit.
• Net losses persisted in 2025 (-₩2.7B) despite a positive operating result, and the trailing return on equity is about -4%.
• Leverage is high: liabilities are 349.5% of equity, with borrowings of ₩2.5B against cash of ₩6.2B in the latest period.
• Price-to-book is about 0.5 and the shares are down 16.2% over one year, while the company pays no dividend and reported no price-to-earnings figure because earnings are negative.
• Recent news is a technical verification of a robot body housing with a Hyundai Motor supplier company, and filings show a conversion price adjustment and a new facility investment correction.

What to watch

• Upcoming shareholder meeting outcomes and the terms of the new facility investment, as the filings do not detail the amount or funding.
• Whether free cash flow turns positive, given the large negative figure over the trailing period and the high liabilities-to-equity ratio.
• Further conversion of the 7th series convertible instruments, which the filings show has already started, and any resulting dilution.