1. What Happened? : CSA Cosmic’s H1 2025 Performance Review

CSA Cosmic reported a 15% YoY decline in revenue to ₩6.4 billion in H1 2025, with both operating and net income swinging to losses. The cosmetics segment saw a significant 39.2% drop in sales, while construction materials also declined by 15.6%.

2. Why Did This Happen? : Reasons for the Decline

The weak performance in cosmetics is attributed to increased market competition, unsuccessful new brand launches, and failure to adapt to changing consumer trends. The construction materials segment faces challenges from low production capacity utilization and volatile raw material prices. Macroeconomic uncertainty adds further pressure on CSA Cosmic’s performance.

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

The impending change in major shareholder and rights offering represent a pivotal moment for CSA Cosmic, potentially introducing significant volatility in the short term. The new management’s ability to turn the business around will be crucial for future valuation. Key factors to watch include the recovery of the cosmetics segment, improved profitability in construction materials, and strengthening of the financial structure.

4. What Should Investors Do? : Action Plan

Investors should exercise caution in the short term. Closely monitor the new management’s strategy and execution, along with the company’s progress in improving its financial health. A wait-and-see approach is recommended until positive changes are evident.