1. What Happened? : H1 2025 Performance Analysis
WooriNet’s sales for the first half of 2025 decreased compared to the same period last year, reaching 25 billion won. Operating profit also declined to 2.7 billion won. However, net profit increased to 3.1 billion won.
- Reasons for Sales Decline: The report attributes the decline to the base effect of equipment deployment sales for the national broadband integrated network project, which were concentrated in the first half of the previous fiscal year. However, discrepancies between the reported figures necessitate further analysis.
- Reasons for Profitability Decline: The decrease in sales and increased R&D expenses are identified as the primary factors.
- Reasons for Net Profit Increase: Non-operating factors such as one-time gains or financial income are likely contributors.
2. Why Did This Happen? : Background of the Decline and Future Growth Drivers
WooriNet’s core businesses are wired and wireless communication equipment manufacturing and sales, and OLED materials. They have identified quantum cryptography, post-quantum cryptography (PQC), and 5G/private network IoT modules as future growth drivers, and are actively investing in R&D. The liquidation of their art business subsidiary mitigates the burden of new business investments.
3. What’s Next? : Investment Implications
While WooriNet is striving to secure future growth drivers, the short-term decline in performance raises concerns for investors. The discrepancy in sales figures adds uncertainty to future performance forecasts. Changes in major shareholders and stock pledge issues also pose potential risks.
4. What Should Investors Do? : Action Plan
Investors should closely monitor sales recovery trends, R&D investment outcomes, and developments related to major shareholders. Making investment decisions after confirming the recovery of fundamentals through future business plans and quarterly earnings announcements is recommended. The current investment opinion is ‘Neutral’.