Novatech노바텍

Novatech's trailing revenue and operating profit have shrunk sharply, though its share price and valuation multiples are sharply lower too.

Novatech, a Korean maker of neodymium permanent magnets for phones, tablets and cars, reported trailing twelve-month revenue of ₩47.1B and operating income of about ₩0.9B to H1 2026, down from ₩55.6B revenue and ₩6.7B operating income in 2025. The share price closed at ₩11,260 on 23 October 2026, down 49% over one year and well below its 52-week high of ₩31,900.

What stands out

• Trailing net income of ₩33.9B is far above operating income of ₩0.9B, so the bottom line rests on items outside core operations; the data does not explain the source.
• Annual revenue fell 15.5% in 2025 and 28.8% in 2024, and operating margin dropped from 27.7% in 2023 to 1.9% trailing.
• Trailing free cash flow was negative at about -₩1.5B, while cash of ₩56.8B exceeds borrowings of ₩0.5B and liabilities to equity is 9.5%.
• The stock trades at 3.5x earnings and 0.7x book, while the DCF model gives a base value of ₩18,664, with bear and bull values of ₩15,759 and ₩23,493.
• Foreign ownership fell from 5.5% to 4.2% over the past 60 days, and the company pays no dividend.

What to watch

• The amended half-year report (Jun 2026) filed on 28 August, which the data does not explain in detail.
• Next quarterly results and whether operating margin recovers from its low trailing level.
• Customer concentration with Samsung Electronics and its suppliers, plus the overseas-heavy sales mix, as named in the company profile.