1. Q2 Results: What Happened?
Osang Jaiel reported KRW 35.3 billion in revenue, KRW 3.1 billion in operating profit, and KRW 1.8 billion in net profit for Q2 2025. This represents a 23% increase in revenue and a 14.8% increase in operating profit compared to the previous quarter. However, net profit decreased by 43.8%.
2. Analyzing the Drivers: Why These Results?
Revenue Growth: The robust growth in the IT segment, combined with seasonal factors, fueled the revenue increase. The PLM Solution division performed particularly well.
Operating Profit Increase: The IT segment’s high profitability and cost optimization efforts contributed to the growth in operating profit.
Net Profit Decline: Non-operating factors, such as increased corporate tax expenses and impairment losses related to investments in associates, are likely the primary reasons for the decline in net profit.
3. Outlook and Investment Strategy: What’s Next?
While the IT segment is expected to continue its growth trajectory, the BT segment’s profitability remains a key concern. The uncertainty surrounding investments in associates also poses a risk. Investors should closely monitor the final earnings release and the company’s future business strategies.
4. Action Plan for Investors
- Review the final earnings release: Analyze non-operating factors and BT segment performance.
- Assess the IT segment’s sustained growth: Monitor the PLM Solution division’s momentum.
- Track new business progress: Evaluate the performance of new materials and cosmetics businesses.
- Evaluate investment synergy: Assess the performance and risk management of the Osang Healthcare investment.
- Monitor macroeconomic conditions: Analyze the impact of interest rate, exchange rate, and oil price fluctuations.