1. What Happened?

Jusung Engineering reported Q2 2025 revenue of ₩78.7 billion and operating profit of ₩6.5 billion, significantly missing market consensus. While revenue increased year-over-year, both operating and net income declined.

2. Why Did This Happen?

Increased R&D spending is identified as the primary reason. While investing in future growth drivers can be positive in the long run, it has led to short-term profitability decline. Decreased sales of display equipment and global economic uncertainty also contributed to the weak performance.

3. What’s the Outlook?

Downward pressure on the stock price is expected in the short term. However, the mid-to-long-term trajectory will depend on the visibility of R&D investment outcomes and the company’s success in cultivating new markets. The growth of the semiconductor market and Jusung Engineering’s technological competitiveness remain positive factors.

4. What Should Investors Do?

  • Short-term investors: Considering the downward pressure from the earnings shock, selling or taking a wait-and-see approach is recommended.
  • Long-term investors: Closely monitor the outcomes of R&D investments and new market development efforts. Make investment decisions after confirming improvements in the company’s fundamentals.