1. SD Biosensor Q2 2025 Performance: An Unexpected Dip
SD Biosensor’s Q2 2025 preliminary results revealed revenue of ₩166.5 billion (a YoY decrease of 11%) and an operating loss of ₩20.5 billion (a YoY decrease of 47%), significantly missing market expectations. Declining COVID-19 related sales and sluggish performance in new business areas are considered the primary factors.
2. Positive Factors: Improving Fundamentals and Market Growth
Despite the setback, there are positive aspects to consider from a long-term perspective. On a half-year basis, revenue slightly increased, and the operating loss narrowed. Notably, net income reached ₩256.3 billion, marking a return to profitability, primarily due to the recovery of gains from derivative financial instruments and corporate tax refunds. It’s important to note these are non-operating factors. Additionally, the continuous growth of the global in vitro diagnostics market and the rise in the USD/KRW exchange rate are favorable factors. The company continues investing in R&D (maintaining 10.27% of revenue), preparing for new product launches with CE IVDR registration and overseas approvals underway. The acquisition of Meridian Bioscience further expands the company’s growth potential.
3. Investment Strategies: Short-Term Caution, Long-Term Opportunity
In the short term, investors should proceed with caution due to the potential for stock price decline following the disappointing Q2 results. However, considering the long-term growth potential, driven by the expanding global market, R&D capabilities, and business diversification efforts, the outlook remains positive. Continuous monitoring of new business performance and improvement in operating profitability is crucial.
4. Risk Management: Monitoring External Factors
Investors must carefully manage risks related to exchange rate volatility, raw material price fluctuations, and intensifying competition.