1. SK Chemicals Q2 2025 Earnings: Decoding the Surprise Beat
SK Chemicals reported Q2 2025 revenue of KRW 384 billion (down 31% YoY), operating profit of KRW 25.1 billion (up 1,469% YoY), and net profit of KRW 15.7 billion (up 848% YoY). Despite revenue falling short of market expectations, operating and net profits delivered a substantial positive surprise. This is attributed to improved cost management and lower raw material prices within the Green Chemicals Biz. segment.
2. Segment Performance: Green Chemicals vs. Life Science
Green Chemicals Biz., contributing 71.3% of consolidated revenue, continued its solid growth trajectory. The segment’s focus on eco-friendly materials and circular economy aligns with ESG trends, securing long-term growth potential. Conversely, Life Science Biz., despite growth in SK bioscience’s CDMO business, recorded a loss due to substantial R&D and facility investments.
3. Key Investment Takeaways and Action Plan
Key factors to consider when investing in SK Chemicals include analyzing the reasons behind the revenue shortfall, the visibility of Life Science Biz.’s profitability improvement, fluctuations in exchange rates and oil prices, and overall macroeconomic uncertainties. While short-term momentum driven by the earnings surprise is expected, a long-term perspective requires careful monitoring of these factors. Investors should focus on the steady growth of Green Chemicals Biz. and the potential of Life Science Biz., while adopting a prudent investment strategy aligned with market conditions.