1. What Happened?: Q2 Earnings Shock Analysis

Sangsin Brake reported sales of KRW 142.8 billion, an operating loss of KRW 4 billion, and a net loss of KRW 13.8 billion for Q2 2025. These figures are considerably lower than market expectations, with operating and net income swinging to losses compared to the previous quarter.

2. Why Did This Happen?: Reasons for the Poor Performance

This earnings shock is attributed to a combination of factors, including a general downturn in the automotive industry, concerns about a global economic recession, and fluctuations in raw material prices. Notably, sales declines in the braking and equipment segments were significant, and the increased burden of inventory due to sluggish sales also contributed to the decline in profitability.

3. What’s Next?: Future Stock Price Forecast

The short-term outlook is negative. The Q2 earnings shock and uncertainty surrounding the automotive industry are expected to continue to put downward pressure on the stock price. In the mid-to-long term, securing competitiveness in the future car market through R&D investment will be key to a rebound in stock price. However, caution is advised for now.

4. What Should Investors Do?: Action Plan

  • Short-term investors: Considering the possibility of further stock price declines, it is advisable to remain on the sidelines or consider a stop-loss strategy.
  • Mid-to-long-term investors: Closely monitor Sangsin Brake’s R&D investment performance and future car market entry strategy. Making investment decisions after confirming future earnings improvements is recommended.