Hanchem한켐

Hanchem's profits fell sharply in 2025 and the first half of 2026 shows a thin operating margin, while the shares are well below their 52-week high.

Hanchem is a Korean contract developer and maker of organic chemical materials, with OLED materials as its largest product line. Revenue fell 7.6% in 2025 and operating margin dropped from 17.8% to 14.3%, and trailing figures to H1 2026 show an 8.6% operating margin with negative free cash flow. The share price is ₩9,070, about 47% below its 52-week high of ₩17,040 but up 29.8% over three months.

What stands out

• Trailing revenue to H1 2026 is about ₩28.0B, and trailing operating income is about ₩2.4B, down from ₩4.9B in 2025 and ₩6.5B in 2024.
• Trailing net income of about ₩4.5B is much higher than operating income, so non-operating items or other one-off effects are likely involved, but the data does not explain them.
• Trailing free cash flow is negative at about -₩2.6B, although cash of ₩2.6B exceeds borrowings of ₩1.0B and liabilities are low at 4.6% of equity.
• The DCF fair value model gives a base of ₩1,479 against a close of ₩9,070, with bear and bull values of ₩793 and ₩2,544; the model's assumptions are not detailed in the data.
• Exchange inquiries about a news report or price move were filed on 19 and 20 August 2026, and the news headline list is empty, so the reason is not stated in the data.

What to watch

• Any response to the August 2026 exchange inquiries and the details behind the price move they refer to.
• Whether trailing operating margin and free cash flow recover in upcoming quarterly or annual filings.
• Foreign ownership rose from 0.5% to 0.9% over 60 days, while foreign and institutional investors were net sellers over the last 20 days; further flows are worth monitoring.