DH AutoleadDH오토리드

DH Autolead's trailing profit held up in H1 2026, but the shares have fallen sharply and the balance sheet carries heavy leverage.

DH Autolead, a Korean maker of steering wheels and related auto parts, reported trailing twelve-month revenue of about ₩383B and operating income of about ₩20B through H1 2026. The share price of ₩2,035 sits well below its 52-week high of ₩3,900, and the data shows negative free cash flow of about ₩-28B on the trailing basis.

What stands out

• Trailing revenue of ₩383B is above the 2025 full-year figure of ₩356B, while trailing operating margin is 5.3% against 6.2% in 2025.
• Liabilities are 161% of equity, and borrowings of ₩21B exceed cash of ₩36B on the reported figures only once other obligations are considered, so leverage is a clear point of concern.
• Free cash flow is negative at about ₩-28B on a trailing basis, so reported profit is not converting into cash in this period.
• The filings list a merger decision on 2026-10-19 and convertible bond activity, but the data does not explain the terms or impact of either.
• Recent headlines report a request for quotation from a US automaker, but the data does not give the size or timing of any resulting business.

What to watch

• The merger decision filed on 2026-10-19 and any further details on its terms and effect on shareholders.
• Q3 2026 results and whether free cash flow turns positive and leverage eases.
• Conversion price adjustments and convertible bond activity, which could affect the share count; the data does not quantify this.