1. What Happened at Sec Co., Ltd. (081180)?

Sec experienced slight revenue growth in the first half of 2025, but aggressive investments and increased R&D expenses led to an operating and net loss. In particular, the sharp decline in sales of X-ray systems for the battery segment is increasing short-term uncertainty. While the IPO strengthened capital, accumulated losses and large-scale investment burdens remain financial risk factors.

2. Why These Results?

  • X-ray System (Semiconductor): Sales declined due to shrinking customer investments and a slowdown in the semiconductor industry. However, the growth of the AI semiconductor and HBM markets maintains mid-to-long-term growth potential.
  • X-ray System (Battery): Sales plummeted due to delays in customer plant expansion and a slowdown in the electric vehicle market. Long-term growth potential remains, but recovery of investment is key.
  • LINAC: Sales surged thanks to increased orders in the defense and industrial sectors. Sec secured new growth engines alongside the growth of the K-defense market.
  • Tabletop SEM: Sales decreased due to seasonal factors and an economic slowdown in the R&D and analytical equipment market.

3. What’s Next for Sec?

The preliminary Q2 2025 results showed positive signs, with sales and operating profit exceeding market expectations. However, net profit fell short of expectations, presenting a challenge. The growth of the HBM and AI markets is expected to provide mid-to-long-term growth opportunities for the X-ray system business. For the battery segment, the timing of recovery and securing technological competitiveness are crucial, while the LINAC business is expected to continue its growth trajectory, driven by the expansion of the defense market.

4. What Should Investors Do?

In the short term, it’s crucial to understand whether the improvement trend in Q2 earnings will continue, particularly focusing on factors improving net profit. Investors should also pay attention to new order trends in the semiconductor and battery segments. In the long term, it’s essential to monitor the growth potential and market share expansion possibilities of the HBM/AI semiconductor, battery, and LINAC businesses. Furthermore, attention should be paid to improvement in financial soundness, recovery of deficit through profitability improvement after facility investment, and debt ratio management capabilities.