1. What Happened? – JoongAng Energyvis H1 2025 Earnings Breakdown

JoongAng Energyvis reported revenue of KRW 25.054 billion (8.9% YoY growth) in H1 2025, but continued its streak of losses with an operating loss of KRW 1.239 billion. Despite strong petroleum sales, high selling, general, and administrative (SG&A) expenses hampered profitability.

2. Why Did This Happen? – Analyzing the Factors Behind the Losses

The company’s losses can be attributed to three main factors. First, its reliance on petroleum sales makes it vulnerable to oil price and exchange rate fluctuations. Second, intensifying market competition and the global shift towards alternative energy pose long-term challenges. Third, high SG&A expenses continue to weigh on profitability.

3. What’s Next? – Outlook and Investment Considerations

JoongAng Energyvis is pursuing diversification efforts, such as its real estate platform business, to secure new growth drivers. However, in the short term, the company must focus on preventing further deterioration of its existing business’s profitability. In the long term, the success of its diversification strategy and cost reduction efforts will be crucial in determining the stock’s trajectory. Investors should also monitor macroeconomic risks, including oil price and exchange rate volatility and the potential for economic slowdown.

4. What Should Investors Do? – Investment Strategies and Recommendations

Short-term investors should focus on the company’s ability to prevent further profit erosion in its core business rather than expecting a rapid turnaround. Long-term investors should closely monitor the execution and results of the diversification strategy before making investment decisions. Furthermore, continuous monitoring of the company’s exposure to and management of oil price and exchange rate volatility is essential. The company’s treasury stock holdings are a positive sign for shareholder value.