Inhwa Precision Q1 2026: Operating Profit Up 56%, Announces Share Buyback and Stock Split
Consolidated Q1 2026 sales decreased 8.9% YoY to KRW 25.99bn, but operating profit surged 56.5% to KRW 4.16bn, improving profitability.
Net income turned to profit of KRW 6.78bn from a loss of KRW 2.33bn YoY. EPS 735 won.
Shareholder returns: Cash dividend of KRW 500 per share, KRW 5bn trust contract for share buyback (Mar 2026~Mar 2027), and stock split (face value from KRW 500 to KRW 100, listing expected Apr 30, 2026).
Core ship engine parts segment: sales KRW 24.49bn (flat), operating profit KRW 5.90bn (up 112% YoY) leading improvement. Metal forming machinery and metal structures segments were weak.
Financial structure: debt ratio 32.6%, net debt KRW 44.4bn, capital gearing 11.5%, stable.
Risk: US product liability lawsuit ($25.7mn) lost, potential enforcement in Korea but management believes immaterial.