What Happened?

i3system’s Q2 2025 revenue came in at 25.3 billion KRW, a significant 22% below market expectations of 32.3 billion KRW. Operating profit also plummeted by 40% to 2.6 billion KRW. While net profit exceeded expectations at 5.3 billion KRW, this is attributed to non-operating factors.

Why Did This Happen?

The decline in revenue and operating profit is primarily attributed to weakness in the core infrared sensor business. The recovery of the X-ray sensor business also fell short of expectations. High inventory levels may have also contributed to the poor performance.

What’s Next?

While downward pressure on the stock price is expected in the short term, the positive net profit and efforts to secure future growth drivers offer some optimism. Investors should closely monitor whether investments such as the new Dungok district facility will translate into improved performance. Market competition and inventory management risks require ongoing monitoring.

What Should Investors Do?

  • Closely monitor upcoming earnings releases and changes in market consensus.
  • Carefully analyze the company’s inventory management strategies and new business development progress.
  • Assess competitor activities and changes in the market environment.