1. Shinhwa Intertek Q2 Earnings: An Earnings Surprise

Shinhwa Intertek reported revenue of KRW 54.6 billion, operating profit of KRW 4.1 billion, and net profit of KRW 2 billion for Q2 2025, marking a return to profitability. This earnings surprise significantly exceeded market forecasts, boosting investor confidence.

2. Drivers of the Turnaround: Improved Fundamentals and New Business Ventures

This strong performance is attributed to the company’s efforts to enhance management transparency and its proactive investments in future growth industries such as metaverse, automotive, and secondary batteries. In particular, the development of optical modules for metaverse and automotive applications, and the successful development of tapes for secondary batteries, are expected to serve as mid- to long-term growth drivers.

3. Future Outlook and Investment Strategy

The positive Q2 results and the momentum from new business initiatives are expected to have a positive impact on the stock price. However, volatility in raw material prices, global economic uncertainty, and intensifying market competition could pose risks. Investors should carefully monitor quarterly earnings trends, new business performance, and macroeconomic indicators when developing their investment strategies. Focus should be placed on operating margin improvement and market expansion potential of new businesses.

4. Key Investor Checkpoints

  • Performance and market expansion potential of new businesses
  • Improvement in operating margin
  • Trends in raw material prices and exchange rates