1. SKC Q2 Earnings: Key Highlights
SKC reported Q2 2025 revenue of KRW 467.3 billion (8% below expectations), operating loss of KRW 70.2 billion (28% below expectations), and net income of KRW 3.4 billion (104% above expectations). While net income significantly exceeded forecasts, the decline in sales and operating profit raises concerns.
2. Reasons for Underperformance: Copper Foil and Market Conditions
The primary drivers of the decline are the struggles in SKC’s copper foil business, a key material for EV batteries. Falling copper foil prices and a slowdown in the EV market have dealt a double blow to SKC’s performance. Weakness in the chemicals division also contributed to the overall decline.
3. Positive Factors and Outlook: Restructuring and Semiconductor Materials
There are some bright spots. While the positive net income is likely due to one-off factors, SKC’s ongoing restructuring efforts and growth potential in the semiconductor materials segment offer a positive outlook for the long term. The recovery of the copper foil market and the success of the restructuring will be crucial for SKC’s future.
4. Action Plan for Investors: Proceed with Caution
Investors considering SKC should proceed with caution. Be mindful of potential short-term volatility and closely monitor the copper foil market and the progress of SKC’s restructuring. Reviewing the detailed earnings release when available to understand the source of the positive net income and formulating a long-term investment strategy is crucial.