Megatouch메가터치

Megatouch has swung back to profit on a trailing basis after a loss-making 2025, but its free cash flow is negative and the share price has fallen sharply over the past month.

Megatouch makes test pins and probe pins used in battery activation and semiconductor testing. Trailing results to H1 2026 show revenue of about ₩62.8B, operating income of about ₩7.4B and net income of about ₩7.5B, after revenue fell 18.4% and the company posted an operating loss in 2025. At ₩8,150, the shares trade at about 31.6 times trailing earnings and 2.7 times book value, and the company pays no dividend.

What stands out

• Trailing operating margin is 11.7% and net margin is 11.9%, compared with a 7.5% operating margin in 2024 and a loss in 2025.
• Trailing free cash flow is about -₩18.2B, even though cash of ₩27.5B exceeds borrowings of ₩3.0B.
• The DCF fair value model gives a base value of ₩719 against the ₩8,150 close, a bear value of ₩493 and a bull value of ₩1,192; the model is an estimate, not a forecast.
• Over 20 days, retail investors were net buyers (about ₩3.1B) while foreign investors were net sellers (about ₩3.5B); foreign ownership eased from 37.8% to 37%.
• The share price is down 25.2% over one month but up 48.5% over three months and 92.7% over one year, with a 52-week range of ₩3,245 to ₩11,940.
• Filings in 2026 include a half-year report, a quarterly report, an investor relations event and a Major Matters Report on an acquisition of tangible assets; the data contains no news headlines.

What to watch

• Whether the positive trailing profit and operating margin hold in the full-year 2026 results, given the 2025 loss.
• Whether negative free cash flow continues and how the company funds its activity, including the tangible asset acquisition named in the June filing.
• Ongoing insider shareholding reports and foreign investor flows, as well as the share price's large swings over recent months.