1. Jayeo’s H1 2025 Performance: A Tale of Two Segments

Jayeo reported revenue of KRW 29.945 billion in H1 2025, a 63.9% decrease year-over-year. While the battery materials segment achieved KRW 10.244 billion in revenue, driven by growth in overseas sales, the plant engineering segment plummeted by 72.8% year-over-year to KRW 19.645 billion, dragging down overall performance. Operating income was KRW 222 million (0.74% margin), and net income swung to a loss of KRW 3.718 billion.

2. Analyzing the Decline: Plant Engineering Struggles

The decline in plant engineering stems from a decrease in new orders and reduced profitability in ongoing projects. Conversely, the battery materials segment continues to grow, leveraging its technological strength in CNT and diverse product portfolio in overseas markets.

3. Investment Strategy: Short-Term vs. Long-Term

In the short term, caution is advised due to declining profitability and the return to losses. While Jayeo’s long-term potential is tied to the growth of the battery materials market, recovery in the plant engineering segment and tangible results from new businesses are crucial. A wait-and-see approach is recommended for now.

4. Key Takeaways for Investors

  • • Recovery of new orders and profitability in the plant engineering division.
  • • Customer diversification and market share expansion in the battery materials segment.
  • • Tangible results from R&D and new business ventures.
  • • Impact of fluctuations in exchange rates and interest rates.