Added to YB: 2026-10-01
Pitch date: 2026-09-25
000850.KS [bearish]
Hwacheon Machine Tool Co., Ltd.
+3.89%
current return
Author Info
Sung Capital is an alternative asset management firm run by Oliver Sung. We invest capital for families, registered investment advisors, and accredited investors through a private investment fund. We pick underpriced stocks, usually in pockets of the market where large pools of capital (funds and institutions) can’t or won’t invest, but we flip every stone. We pick stocks only, use no leverage, and require a significant margin of safety in every investment. Sign up for the newsletter.
Company Info
Hwacheon Machine Tool Co., Ltd. engages in the manufacture and sale of metal machine tools and kitchenware in South Korea, the United States, Japan, Europe, and internationally.
Market Cap
KRW 82.9B
Pitch Price
KRW 37.3K
Price Target
N/A
Dividend
N/A
EV/EBITDA
2.48
P/E
4.05
EV/Sales
0.21
Sector
Machinery
Category
value
All Korean net nets #4: going through change - Hwacheon Machine Tool (000850.KS)
000850.KS (monitor): Hwacheon looks like a value trap despite trading at 1.0x NCAV, 0.24x book and 64% of net financial assets. Through-cycle operating returns are abysmal, key holdings are effectively illiquid, and four family directors received KRW3.8bn in FY25 against KRW4.2bn of operating profit. The March Value-up plan targets doubling P/B but vaguely proposes to “amend the articles on dividends,” making concrete dividend news the main item to watch.
Read full article (3 min)