1. NovaLex Q2 Earnings: What Happened?
NovaLex reported sales of KRW 99 billion (+6% YoY), operating profit of KRW 11 billion (+24%), and net profit of KRW 7.8 billion (-7%) for Q2 2025. While sales and operating profit surpassed market expectations, net profit fell short.
2. Why the Fluctuation in Performance?
The increase in operating profit is attributed to the growth of the health functional food market and NovaLex’s competitive edge in individually recognized ingredients. However, increased SG&A expenses and inventory valuation losses are cited as the main causes for the decline in net profit. Decreased R&D investment also raises concerns about securing long-term growth momentum.
3. So, What’s Next?
Market experts predict that the strong Q2 results will positively impact stock prices in the short term. However, the declining trend in net profit and the potential for increased inventory are factors investors should monitor closely.
- Positive Factors: Solid sales growth, increasing overseas exports, competitive edge in individually recognized ingredients
- Concerning Factors: Declining net profit, decreased R&D investment, potential for increased inventory, intensifying competition
4. What Action Should Investors Take?
Focus on NovaLex’s core competencies and growth potential from a long-term perspective. Closely monitor the company’s efforts to improve profitability and sustain R&D investments. Comparing NovaLex’s financial indicators and valuation with those of its competitors is crucial for determining an appropriate stock price level. Furthermore, the impact of macroeconomic variables should be continuously analyzed.