1. Solid’s H1 2025 Performance: Analyzing the Decline
Solid’s Q2 2025 revenue of 56.2 billion KRW missed market expectations, and net profit plummeted to 0.9 billion KRW. The decline is primarily attributed to the global telecom capex slowdown and continued weakness in core business segments.
2. Open RAN and Defense: Solid’s New Growth Engines
Despite the disappointing results, Solid is actively pursuing opportunities in the Open RAN market and expanding its defense communications business. The 5G Open RAN market holds significant growth potential, while the defense sector offers a stable revenue stream. Venture capital investments are also seen as a long-term growth strategy.
3. Investing in Solid: Short-Term vs. Long-Term
In the short term, downward pressure on Solid’s stock price is expected due to the weak earnings and negative market sentiment. A cautious approach is advised, with consideration given to a dollar-cost averaging strategy. The long-term outlook hinges on the success of new ventures like Open RAN and defense, as well as the recovery of the 5G investment cycle.
4. Key Monitoring Points
- Open RAN revenue growth trajectory
- Performance of venture capital investments
- New orders and earnings in the defense business
- Recovery of the 5G investment cycle
Frequently Asked Questions
Q: What are Solid’s main businesses?
A: Solid’s primary businesses include Distributed Antenna Systems (DAS), specialized network solutions for mobile communications and defense, and 5G Open RAN.
Q: What caused Solid’s weak H1 2025 performance?
A: The slowdown in global telecom equipment spending and weakness in core business segments are the main reasons.
Q: What is the outlook for investing in Solid?
A: Downward pressure on the stock price is expected in the short term, but long-term growth potential exists depending on the success of new ventures like Open RAN and defense.
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