1. What Happened? : InkTec’s Current State of Underperformance
InkTec recorded consolidated revenue of KRW 36.13 billion (a 1.0% increase YoY) in H1 2025. However, operating profit plummeted by 86.6% to KRW 413 million, and net income turned negative to KRW -1.12 billion.
2. Why Did This Happen? : Root Cause Analysis of Profit Decline
The primary reasons for the profit decline are the increase in cost of goods sold (COGS) ratio (up 4.3%p) and selling, general, and administrative (SG&A) expenses (up 1.7%p), particularly the surge in R&D expenses (up 3.6%p YoY). This is part of the investment for securing new growth engines, but it negatively impacted short-term profitability. Furthermore, intensified competition in the office ink market and the digital transformation of the industrial ink market also contributed to the poor performance.
3. What Needs to be Done? : InkTec’s Future Strategies and Challenges
In the short term, InkTec should focus on improving profitability through cost efficiency. Reducing COGS and SG&A expenses, and increasing the efficiency of R&D spending are urgent tasks. In the long term, InkTec needs to establish a sustainable growth foundation by fostering new growth engines such as electronic materials and components businesses.
4. What Should Investors Do? : Investment Strategies for InkTec
Investors should closely monitor InkTec’s cost control capabilities, new business performance, and financial soundness improvement efforts. In particular, the growth potential of new growth engines and whether profitability improves will be key factors in investment decisions.
Q: How did InkTec perform in H1 2025?
A: While revenue slightly increased, operating profit and net income decreased significantly, resulting in a net loss.
Q: What are the reasons for InkTec’s profit decline?
A: The main reasons are the increase in COGS ratio and SG&A expenses, particularly the surge in R&D expenses.
Q: What is the outlook for InkTec?
A: Short-term profitability improvement is crucial, and long-term growth should be pursued by fostering new growth engines.
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