LiComm라이콤

LiComm has swung back to a small profit on a trailing basis, but the stock trades at a very high multiple and cash flow is negative.

LiComm makes optical communication equipment, mainly optical amplifiers used in telecom, data center and cable networks, and sells largely to overseas customers. On trailing twelve-month figures to H1 2026 it reports revenue of ₩18.6B... to be precise, ₩18.6B, operating income of ₩1.4B and net income of ₩1.4B, after large losses in 2023 and 2024. Free cash flow was negative at about -₩3.5B, and the shares closed at ₩4,225 on 15 October 2026, with a market value of about ₩129B.

What stands out

• Trailing revenue is about ₩18.6B with a 7.3% operating margin, a clear improvement on the 2024 operating loss of ₩5.3B and the 2025 operating margin of 3.3%.
• The valuation is high: a P/E of about 91 and a P/B of 6.1, against much lower multiples for the peers listed in the data, and the trailing ROE is only 6.8%.
• Free cash flow is about -₩3.5B on a trailing basis, while cash is ₩1.6B and borrowings are not reported in the data.
• The filings list a convertible bond issue decision (8 July 2026) and its results (16 July 2026), plus several major sales or supply contracts in March and June 2026.
• The shares are up 85.3% over one year but down 3.8% over one month; the 52-week high is ₩9,330 and no dividend is paid.

What to watch

• The full-year 2026 results and any change in the operating margin, since the H1 2026 profit is the first sustained positive reading in the data.
• Details of the convertible bond and its effect on dilution, which the data does not provide beyond the filing titles.
• Whether the supply contracts convert into sustained revenue and positive free cash flow, and the North America expansion the company says it is pursuing.