Daemo Engineering대모

Daemo Engineering shows a small recovery in trailing profit, but its margins are thin and free cash flow is negative.

Daemo Engineering makes excavator attachments such as hydraulic breakers and quick couplers, mostly for export. On trailing twelve-month figures to H1 2026 it reports revenue of ₩41.8B... wait, revenue of ₩41.8B is not correct in the data: trailing revenue is ₩41.8B and operating income is ₩1.4B, a 3.3% operating margin. The share price is ₩6,260, about 42% below its 52-week high of ₩10,910 but well above its low of ₩4,800.

What stands out

• Trailing revenue is about ₩41.8B with a 3.3% operating margin and 5.5% net margin, against 4.7% operating margin in 2025.
• Revenue fell 1.4% in 2025 and 7% in 2024 after a 19% drop in 2023, so the top line has been weak for several years.
• Trailing free cash flow is negative at about -₩0.4B, and borrowings of ₩11.1B exceed cash of ₩4.3B.
• Foreign ownership fell from 3.3% to 2% over 60 days, and foreign investors were net sellers over the last 20 days.
• Recent filings are routine (half-year report, shareholding reports); the data contains no news headlines.

What to watch

• The full-year 2026 results and the next quarterly report, to see whether operating margin holds above the 2025 level.
• Whether free cash flow turns positive given the debt load and the new Siheung smart factory spending.
• Further 5%+ holding or insider shareholding filings, which may signal ownership changes.