1. Anapass H1 2025 Earnings: What Happened?
Anapass recorded KRW 47.991 billion in sales for the first half of 2025, a decrease compared to the same period last year. The decline in sales at major customer A had a direct impact, and the slowdown in inventory turnover also suggests the possibility of decreased sales efficiency.
- Positive Signals: Operating profit increased year-on-year due to cost reduction efforts. Q2 preliminary earnings announced sales of KRW 25.7 billion, significantly exceeding market expectations (KRW 0). (However, it’s a decrease compared to the same period of the previous year.)
2. Reasons for the Sluggish Performance
While the OLED market is growing, the sluggish performance of major customer A has directly impacted Anapass’s results. The high customer concentration serves as Anapass’s Achilles’ heel. Additionally, the financial instability of affiliate GCT Semiconductor Holding, Inc. poses a potential risk.
3. Anapass’s Future Outlook
Positive factors exist, including OLED market growth, expansion of AI PC partnerships, and securing automotive display certification. However, addressing customer concentration, managing GCT investment risks, and improving inventory management efficiency are key tasks that will determine Anapass’s future growth.
4. Action Plan for Investors
- Short-term Investment Strategy: Conservative approach. Check the visibility of earnings improvement in Q2-Q3 and information related to GCT.
- Mid- to Long-term Investment Strategy: Focus on the benefits from OLED market growth, customer diversification, strengthening of the new business portfolio, improvement in exchange rate and inventory management, and performance of entry into the automotive display market.