1. Seokyeong AT H1 2025 Earnings Analysis: What Happened?

Seokyeong AT recorded sales of KRW 10.05 billion (-28.7% YoY), operating profit of KRW 3.47 billion (-7.4% YoY), and net income of KRW 1.81 billion (-58.2% YoY) in H1 2025. The decline in sales from processing and increased R&D expenses and investments in new businesses were the main causes.

2. Reasons for Sluggish Performance: Why These Results?

The decline in sales was primarily due to a decrease in processing revenue. The decline in profit was mainly attributed to increased SG&A expenses from investments in new businesses (5G/6G, solid-state batteries) and the construction of Plant 3. The significant decrease in net income was also influenced by the base effect of financial asset valuation gains in the previous year.

3. Seokyeong AT’s Future: What’s Next?

While sluggish performance is a concern in the short term, the company has high growth potential in the mid-to-long term with new businesses such as 5G/6G materials and solid-state battery materials. Securing stable sales from existing businesses such as bio-healthcare, electronics, and coatings is also a crucial factor.

  • Positive Factors: Growth in core businesses (dental materials, cosmetic ingredients), securing new growth engines (5G/6G, solid-state battery materials), improvement in operating cash flow.
  • Risk Factors: Risks associated with new businesses, intensifying market competition, fluctuations in raw material prices, and foreign exchange fluctuations.

4. Investor Action Plan: What Should Investors Do?

Seokyeong AT is currently experiencing a slowdown in performance due to increased investment, but it is enhancing its long-term growth potential by securing future growth engines. Investors should closely monitor the performance of new businesses, the success of technology development and mass production, and the ability to generate stable profits from existing businesses. The success of technology development and market entry related to 5G/6G materials and solid-state battery materials, in particular, will be key factors determining the stock’s future direction.