1. What Happened? : JNB H1 2025 Earnings Analysis

JNB reported consolidated revenue of KRW 793.8 billion (down 3.6% YoY) and operating profit of KRW 130.2 billion (down 59.8% YoY) for the first half of 2025. Net income turned to profit due to a tax refund, but both revenue and operating profit declined significantly, indicating a sharp deterioration in profitability.

  • Key Issues: Increased dependence on Company E (93.5%), expansion of contract manufacturing, decreased R&D investment

2. Why Did This Happen? : Analysis of the Causes of the Earnings Decline

This decline is attributed to a combination of factors: the global semiconductor market downturn leading to reduced investment from key client Company E, rising raw material and logistics costs, and declining profitability due to the increased proportion of contract manufacturing revenue. The high customer concentration reveals a structural vulnerability to external market fluctuations.

3. What’s Next? : Future Outlook and Investment Strategy

In the short term, JNB’s performance will likely be heavily influenced by the recovery of investments from its major client and the overall improvement of the semiconductor market. In the medium to long term, the success of its new business (Next High-Tech) will be a crucial factor. A cautious investment approach is advised at this time. Closely monitor upcoming reports for signs of sales recovery, new business performance, and improvements in financial soundness.

4. What Should Investors Do? : Key Metrics to Monitor and Action Plan

  • Key Monitoring Indicators: Company E’s investment plans, Next High-Tech’s business performance, changes in R&D investment
  • Investment Strategy: Approach short-term investments with caution, consider long-term growth potential when deciding investment timing.