1. Fasoo (015090) H1 2025 Earnings: What Happened?
Fasoo recorded KRW 19.1 billion in revenue (a 1.58% decrease YoY) and a net loss of KRW 3.6 billion in H1 2025. Preliminary results also fell short of market expectations, continuing a trend of underperformance.
2. Analyzing the Decline: Why These Results?
- Intensified Competition in Data Security: Declining sales in Fasoo’s core data security business, attributed to aggressive marketing by competitors and reduced IT spending by clients.
- Increased Investment in New Businesses: While investments in AI and CPS security for future growth are positive, they contribute to short-term cost burdens and reduced profitability.
- Rising SG&A and R&D Expenses: Despite declining sales, increased SG&A and R&D expenses further widened the net loss.
3. Future Outlook and Investment Strategies: What Now?
Downward pressure on stock prices is expected in the short term, but the key factor for mid-to-long-term prospects is whether Fasoo can improve its fundamentals. Key variables include recovery of the data security market, performance of new businesses, and cost optimization efforts.
- Conservative Investment Approach: A cautious approach is recommended until there’s evidence of performance improvement and successful new business ventures.
- Monitoring Points: Next quarter’s earnings, order intake for new businesses, and cost management/profitability improvement efforts.
4. Action Plan for Investors
Investors should focus on the company’s fundamentals and growth potential rather than short-term stock price fluctuations. Carefully monitoring Fasoo’s future earnings announcements and business strategies is crucial for making informed investment decisions.