1. Key Focus of the IR: Q2 Earnings and Future Growth Strategies

The IR will unveil LIG Nex1’s preliminary Q2 2025 earnings along with updates on the company’s current status and future strategies. Investors should focus on whether the information presented can address concerns raised in Q1, including declining sales and high debt-to-equity ratio. The key question is whether Q2 results will show a recovery from the Q1 slump.

2. Q1 2025 Performance Analysis: Slowing Growth and Financial Stability Concerns

LIG Nex1 faced challenges in Q1 2025, including declining sales, decreased net income, and a high debt-to-equity ratio. Beyond seasonal factors and the completion of specific projects, slowing growth, including declining exports, is a cause for concern. Large-scale investments, while potentially driving future growth, also carry the risk of short-term profitability decline.

3. External Environment Analysis: Rising Interest Rates and Exchange Rate Volatility

Rising interest rates are adding to LIG Nex1’s financial burden. Fluctuations in the KRW/USD and KRW/EUR exchange rates directly impact export performance. Rising raw material prices can also contribute to cost pressures.

4. Investment Strategy: Careful Consideration Post-IR

Investors should carefully review the Q2 2025 preliminary earnings and management’s explanations during the August 11th IR. Analyzing trends in sales, operating profit, and net income, along with their underlying causes, is crucial. Consider order backlog, future order prospects, risk management strategies for raw material prices and exchange rate fluctuations, debt management strategy, and investment plans before making investment decisions.