1. GST H1 2025 Performance: Growth and Challenges
GST achieved revenue of KRW 174.193 billion in H1 2025, a 3.9% YoY increase, driven by strong export sales. However, operating profit declined by 15.5% YoY to KRW 26.937 billion due to increased R&D investment and SG&A expenses. A rise in Scrubber prices suggests continued product competitiveness.
2. Decoding the Profit Dip: Investing in the Future
The decline in operating profit is primarily attributed to increased R&D spending, aimed at securing future growth engines. GST invested 4.3% of its revenue (KRW 7.147 billion) in R&D, focusing on developing new technologies like ultra-low temperature chillers, plasma scrubbers, and immersion cooling solutions. This impacted short-term profitability but is a positive indicator for long-term growth.
3. GST’s Potential in the AI-Driven World
The rapid growth of the AI industry and the surge in data center investments present a significant opportunity for GST. Data center cooling solutions are poised to be a key driver of GST’s future growth. The global trend towards eco-friendly solutions also favors GST’s high-efficiency cooling technology.
4. Investor Action Plan
- Long-term perspective: GST stands to benefit from the growth of the AI and data center markets.
- Risk management: Monitor operating profit margin improvement, customer diversification, and the progress of new businesses.
- Key metrics to watch: Track operating profit margin trends, new customer acquisition, and advancements in new business initiatives.