1. Ziosoft Q2 2025 Performance: Oasis Growth and IT Stability

Ziosoft reported consolidated revenue of KRW 155.9 billion, operating profit of KRW 5.3 billion, and net income of KRW 4.6 billion in Q2 2025. Although revenue slightly decreased year-over-year, operating and net income improved. The continued growth of Oasis and stable IT services segment performance were key drivers.

2. Segment Analysis: Growing Oasis, Robust IT

  • IT Services: Maintained stable revenue centered around mobile communication and public sectors. Future growth expected from expansion into logistics systems.
  • Advertising: Pursuing profitability improvement through integrated marketing services.
  • Distribution and E-commerce (Oasis): Maintaining profitability and rapid growth. Requires continued monitoring of increasing competition and seasonality.

3. Financial Analysis: Derivative Losses and Debt Ratio Increase Raise Concerns

Consolidated equity decreased, while retained earnings increased. However, derivative valuation losses and an increase in the debt ratio (41% to 44%) pose risks. The derivative losses, in particular, could increase stock price volatility.

4. Macroeconomic Impact: High Interest Rates and Weakening Consumer Sentiment

High interest rates, exchange rate volatility, and weakening consumer sentiment pose challenges for Ziosoft, especially its Oasis distribution business. Fluctuations in raw material prices and freight costs could also impact profitability.

5. Investment Strategy: Neutral Stance, Continuous Monitoring Needed

Ziosoft shows high growth potential, but investors should consider the financial risks and macroeconomic uncertainties. Continuous monitoring of derivative valuation loss trends, financial restructuring efforts, Oasis’s market competitiveness, and the company’s ability to navigate macroeconomic changes is crucial for prudent investment decisions.