1. Q2 Earnings: Rental Car Business Continues Growth Trajectory

Redcap Tour reported consolidated revenue of ₩94.8B, operating profit of ₩13.5B, and net income of ₩7.5B for Q2 2025. While the continued growth of the rental car business was a key driver, both revenue and operating profit decreased compared to the previous quarter. This can be attributed to the fading impact of the seasonal peak seen in Q1.

2. Core Business Competitiveness: Strength of the Rental Car Business

Redcap Tour’s core strength lies in its rental car business. Q1 2025 saw a remarkable 44.4% year-over-year increase in operating profit for this segment, and the momentum continued into Q2. This points to efficient operations and increasing market share.

3. New Business Growth Potential: Securing Future Growth Engines

Redcap Tour is diversifying its business portfolio by venturing into new areas such as used car import/export and information services. These new ventures are expected to serve as long-term growth engines, contributing to future revenue streams.

4. Financial Risks: Monitoring the Rising Debt-to-Equity Ratio

Investments in expanding the rental car business have led to a steady increase in Redcap Tour’s debt-to-equity ratio. Continuous monitoring and management are crucial to maintain financial soundness. Investors should closely watch the trend of this ratio.

5. Investor Action Plan: A Balanced Investment Strategy

Redcap Tour holds growth potential, underpinned by the strength of its rental car business. However, investors must consider the rising debt-to-equity ratio and macroeconomic uncertainties. A balanced investment strategy focused on long-term growth potential rather than short-term fluctuations is recommended. Careful consideration of Q3 rental car performance, new business outcomes, debt management, and macroeconomic factors is crucial for making informed investment decisions.