1. What Happened?

SK Chemicals reported Q2 2025 revenue of KRW 596.9 billion, exceeding expectations by 8%. However, operating profit came in at a disappointing KRW -1 billion, significantly below estimates. Net income showed a positive turn, reaching KRW 14 billion.

2. Why Did This Happen?

Several factors likely contributed to the weak operating profit, including fluctuations in raw material prices, changes in order intake, and intensified competition in the CDMO business. The decline in operating rate at SK bioscience’s Andong L House facility and increased competition in the global CDMO market appear to have particularly impacted profitability.

3. What Should Investors Do?

While short-term stock price volatility is possible, the long-term growth potential of SK Chemicals’ Green Chemicals and Life Science businesses remains promising. Investors should focus on the company’s fundamental value and long-term growth prospects rather than reacting to short-term market fluctuations.

4. Investor Action Plan

  • Seek additional information regarding the reasons for the decline in operating profit.
  • Monitor the growth strategies of the Green Chemicals and Life Science businesses.
  • Pay close attention to changes in the macroeconomic environment (exchange rates, oil prices, interest rates).
  • Evaluate the company’s value and make investment decisions based on a long-term perspective.