Avaco’s Q2 Performance: The Numbers

Avaco reported revenue of KRW 159.1 billion, operating profit of KRW 20.1 billion, and net income of KRW 7.4 billion in Q2 2025. This represents a substantial improvement from Q1’s KRW 26.1 billion revenue and KRW 3.4 billion operating loss, and significantly exceeds the performance of Q2 2024 (KRW 58.1 billion revenue, KRW 3.3 billion operating profit).

Key Drivers of Growth

The primary drivers behind Avaco’s impressive Q2 results are the recovery of the flat panel display (FPD) equipment market and the continued growth of the secondary battery equipment sector. The commencement of 8.6G display investments and the robust growth of the electric vehicle and energy storage system (ESS) markets have significantly contributed to Avaco’s performance. Furthermore, the delays in customer investments that hampered Q1 results appear to have been resolved.

Avaco’s Outlook: What’s Next?

With the projected continued growth of the FPD and secondary battery markets, Avaco’s outlook appears positive. A strong order backlog further supports this optimistic view. However, investors should monitor the company’s high debt-to-equity ratio and the overall macroeconomic uncertainty.

Action Plan for Investors

  • Short-Term: The strong Q2 earnings may create upward momentum for Avaco’s stock price, presenting a potential opportunity for short-term gains.
  • Long-Term: Investors should continue to monitor Q3 and subsequent earnings, new order intake, technological developments, and business expansion strategies for a comprehensive long-term investment assessment. Careful attention should also be paid to Avaco’s inventory management and efforts to improve its debt-to-equity ratio.