1. SCD Q2 2025 Earnings: What Happened?

SCD reported sales of KRW 52.4 billion, operating profit of KRW 1.6 billion, and net income of KRW 2.1 billion for Q2 2025. Compared to the same period last year, sales and operating profit decreased by 6.76% and 33.33%, respectively, while net income slightly increased due to gains from non-operating income.

2. Reasons for the Decline: Why?

The decrease in sales is primarily attributed to lower sales volume of major products. The decline in operating profit is a result of both decreased sales and increased cost of goods sold and selling, general, and administrative expenses. Recent performance trends show unstable earnings since Q4 2024, raising concerns about a potential growth slowdown.

3. Investment Strategy: What Now?

Positive Factors:

  • Solid financial structure
  • Competitive edge in core business
  • Expansion into the automotive parts business

Negative Factors:

  • Declining profitability
  • Decreased R&D investment
  • Exchange rate volatility

Short-Term Investment Strategy: A conservative approach is recommended considering the weak performance and declining profitability. Investors should monitor exchange rates and the performance of the automotive parts business while remaining cautious.
Long-Term Investment Strategy: Monitor the successful establishment of the automotive parts business and the expansion of R&D investment. Prudent investment decisions are recommended, taking into account global economic trends and the recovery of related industries.

4. Action Plan for Investors

Investors should continuously monitor SCD’s future earnings announcements and business progress, and regularly review their investment strategies. The growth potential and profitability improvement of the automotive parts business are key observation points. Making informed investment decisions requires a comprehensive assessment of expert analysis and market conditions.