1. What Happened? THE CUBE& H1 2025 Performance Analysis

THE CUBE& announced its H1 2025 earnings, exceeding market expectations for revenue and achieving operating profit. However, net income remains negative.

  • Revenue: KRW 6.3B (Exceeded market expectations)
  • Operating Profit: KRW 200M (Turned to profit)
  • Net Income: KRW -600M (Net loss continues, reduced compared to the same period last year)

2. Why These Results? Drivers of Profitability and Growth

Key factors contributing to the operating profit turnaround are business expansion of major clients like HD Hyundai Infracore and Hyundai Motor Company, along with new business achievements such as THE CUBE&’s eco-friendly engine parts supply contract. Operating cash flow has also significantly improved.

3. What’s Next? Potential Risks and Investment Strategy

Despite positive factors, uncertainties such as a slowdown in the overall automotive industry, exchange rate volatility, financial burden from high investment activities, and management changes remain risk factors. The slight decline in Q2 performance compared to Q1 is particularly concerning.

4. What Should Investors Do? Action Plan

Investment in THE CUBE& requires a cautious approach. It’s crucial to closely monitor future earnings improvement, performance of new businesses, and the company’s ability to respond to exchange rate fluctuations and changes in the macroeconomic environment before making investment decisions.