1. What Happened? Sangsin EDP’s Earnings Shock

Sangsin EDP recorded consolidated revenue of KRW 119.5 billion and an operating loss of KRW 3 billion in the first half of 2025. Compared to the same period last year, sales decreased by 18.4%, showing a significant decline in performance, shifting from profit to loss.

2. Why Did This Happen? Analyzing the Causes of the Downturn

This downturn is the result of a combination of macroeconomic factors such as the global economic slowdown, high interest rates, and increased volatility in the electric vehicle market, as well as microeconomic factors, such as changes in production plans by major customers. In particular, the decline in sales of core products such as CAN (cylindrical) and medium/large CAN was noticeable.

3. What’s Next? Future Outlook and Investment Strategies

In the short term, a negative outlook prevails. The decline in earnings and increased financial burden are likely to dampen investor sentiment. However, in the medium to long term, positive factors such as ESS market growth and the benefits of the US IRA policy should be noted. New technology development, such as the preparation for mass production of 46-phi cylindrical CAN, could also provide opportunities for future performance improvement. Therefore, short-term investments should be approached conservatively, and medium- to long-term investment strategies should be established by closely monitoring the performance of the ESS business and new technology development.

4. Investor Action Plan

  • Short-term: Maintain a conservative perspective, wait and see
  • Mid- to long-term: Monitor performance of ESS business, new technology development, etc., and make investment decisions after confirming turnaround signals