1. What Happened? Q2 Earnings Breakdown
Haesung DS reported Q2 2025 revenue of KRW 157.4 billion, a 14.5% increase compared to the previous quarter, indicating a recovery trend. However, operating profit came in at KRW 8.2 billion, below expectations, and the company reported a net loss of KRW 0.4 billion.
2. Why the Disappointing Results? Analyzing the Profit Slump
Despite the revenue recovery, the primary reason for the decline in profitability is attributed to rising raw material prices, increased logistics costs, and higher interest expenses due to increased debt. The high cost of goods sold and the burden of debt continue to pressure profitability.
3. What’s Next? Outlook and Investment Strategy
In the short term, the net loss is expected to negatively impact the stock price. While the long-term growth potential of the semiconductor market remains, Haesung DS faces significant challenges, including improving profitability, stabilizing its financial structure, and diversifying its product portfolio.
4. What Should Investors Do? Action Plan
Investors should carefully monitor the company’s efforts to improve earnings and its specific implementation plans. Pay close attention to cost reduction initiatives, strategies for improving cost structure, and debt management plans.