1. Q2 2025 Earnings: Key Highlights

Samchuly Bicycle announced preliminary Q2 2025 earnings on August 13th, reporting revenue of 963 billion KRW, operating profit of 74 billion KRW, and net income of 71 billion KRW. While revenue decreased compared to the same period last year, profitability significantly improved.

2. The Secret to the Earnings Surge: Travel Business and Efficient Cost Management

The driving force behind this strong performance is the travel business segment. The recovery of the domestic travel market, combined with a direct sales strategy, led to significant growth in both revenue and profit. Despite declining sales, the bicycle business segment maintained profitability through efficient cost management.

3. Investment Considerations: Sluggish Bicycle Sales and Financial Structure

The picture isn’t entirely rosy. Declining sales in the bicycle segment remain a challenge. Furthermore, the high debt ratio increases the risk associated with interest rate fluctuations.

4. Action Plan for Investors: Short-Term Positive, Long-Term Perspective Crucial

In the short term, this earnings announcement is expected to have a positive impact on the stock price. However, from a long-term investment perspective, it’s crucial to focus on the recovery of the bicycle business and improvement of the financial structure. Strategic planning leveraging opportunities such as growth in the e-bike market is key.