1. What Happened? : Q2 Earnings Shock Analysis

Dongwon Industries reported an 88% year-over-year decrease in sales to KRW 258.7 billion and an 85.3% decrease in operating profit to KRW 15.8 billion for Q2 2025. These figures fell far short of market expectations and represent a sharp decline compared to Q1 performance.

  • Q2 2025 Preliminary Earnings (KRW Billion)
  • Revenue: 258.7
  • Operating Profit: 15.8
  • Net Profit: 9.1

2. Why Did This Happen? : Causes of the Earnings Decline

While the exact causes are yet to be confirmed, several possibilities are being considered, including poor performance in the fishery business, setbacks in the packaging division, and unexpected external shocks. A decline in catch volume and rising costs in the fishery business are suspected as primary factors. Negative factors related to the secondary battery materials business may have also contributed.

3. What’s Next? : Stock Price Forecast and Investment Strategies

A short-term drop in stock price seems inevitable. The medium to long-term outlook will depend on the cause of the decline and the company’s response. If the issues are structural, it could lead to a decline in corporate value, requiring investors to proceed with caution.

  • Investor Action Plan
  • Approach short-term investments with extreme caution.
  • Carefully review the company’s official announcements and future business plans.
  • It’s advisable to wait until the cause of the earnings decline becomes clear.