1. DS Danseok Q2 Earnings: The Story Behind the Shock

DS Danseok reported disappointing Q2 2025 results, with revenue at ₩221.7 billion, operating loss at ₩1.3 billion, and net loss at ₩5.4 billion. This significant decline year-over-year vastly underperformed market expectations. The primary drivers are attributed to rising raw material prices, particularly surging crude oil prices, and overall weak demand.

2. Business Segment Analysis: Navigating Risks and Opportunities

  • Bioenergy: Despite the positive development of commencing SAF pre-treatment material production, rising crude oil prices and sluggish sales have negatively impacted profitability. The expansion of the RFS system offers long-term growth momentum.
  • Battery Recycling: While the growth potential remains high due to the expanding EV market, short-term profitability remains uncertain.
  • Plastic Recycling: Continued poor performance due to the construction market slowdown and intensified price competition. Expansion into PCR plastics offers future growth potential.

3. External Factors: Investment Strategies in a Volatile Landscape

External factors such as rising crude oil prices, high interest rates, and the slowdown of the Chinese economy negatively impact DS Danseok. The bioenergy business, in particular, is highly susceptible to crude oil price fluctuations, impacting its profitability. Close monitoring of future crude oil price trends is crucial.

4. Action Plan for Investors: Gathering Information and Analysis

While DS Danseok faces short-term challenges in improving profitability, its portfolio of eco-friendly businesses holds long-term growth potential. Investors should closely monitor future earnings releases and market developments, continuously adjusting their investment strategies based on additional information and analysis.