What Happened?
Daeduck Electronics reported revenue of KRW 245.8 billion, operating profit of KRW 1.8 billion, and net profit of KRW 4.4 billion for Q2 2025. Revenue exceeded market expectations, but both operating and net profit fell short.
Why These Results?
Despite returning to profitability compared to Q1’s loss, the improvement is slower than anticipated. Rising raw material prices, unfavorable exchange rates, and declining production capacity utilization likely impacted profitability despite revenue recovery. Notably, the first half of 2025 ended with a cumulative operating loss.
What’s Next?
- Focus on Profitability Improvement: Enhance cost efficiency and strengthen selling price management.
- Expand Overseas Markets and High-Value-Added Products: Focus on growth markets like the US and Vietnam and expand the portfolio of AI server and autonomous driving related products.
- Transparent Information Disclosure: Strengthen communication with the market and clearly present future strategies.
Action Plan for Investors
Investors should be wary of short-term stock price volatility. A long-term investment perspective requires careful monitoring of profitability improvement, performance in overseas markets, and new business performance. The current investment opinion is ‘Neutral’.