1. Seoheung Q2 Earnings: A Surprising Success

Seoheung posted sales of KRW 190 billion (+7.0% YoY), operating profit of KRW 20.1 billion (+113.8% YoY), and net income of KRW 23.9 billion in Q2 2025, significantly surpassing market consensus. The explosive growth in operating and net profit, in particular, has heightened investor expectations.

2. Reasons Behind the Surge

This earnings surprise is attributed to the robust growth of the capsule business and the stable growth of the raw materials and cosmetics businesses. Seoheung’s dominant market position with a 95% share in the domestic hard capsule market and the expansion of its Vietnam plant to target overseas markets served as key growth drivers.

  • Capsule Division: Steady demand growth due to the aging population and growth of the health functional food market.
  • Raw Materials Division: Increased demand for gelatin and collagen, and market expansion of subsidiary JelTec.
  • Cosmetics Division: Growth of the OEM/ODM market and expansion of supplies to major corporations.

3. Future Stock Outlook and Investment Strategy

This earnings announcement serves as a crucial opportunity to confirm Seoheung’s growth potential and improved profitability. A positive market response and stock price momentum are expected, and robust growth is projected in the mid-to-long term. However, a prudent investment strategy should be established, considering risk factors such as fluctuations in exchange rates and raw material prices, and the possibility of a global economic slowdown.

4. Action Plan for Investors

While Seoheung’s investment appeal is high, individual investment preferences and goals must be considered before making investment decisions. It’s crucial to seek expert advice and consistently monitor the company’s financial status and market conditions. Investing in Seoheung’s growth potential from a long-term perspective is advisable.