1. What Happened at SEBO E&C in H1 2025?
SEBO E&C demonstrated resilience amidst the construction downturn by significantly improving its profitability. While revenue decreased by 11.9% YoY to KRW 178.2 billion, operating profit surged by 22.9% to KRW 18.8 billion. This achievement highlights the company’s effective cost control and successful profitability enhancement strategies. Furthermore, the addition of ‘environmental engineering’ to their business objectives signals a significant step towards securing future growth engines.
2. Why These Results?
- Revenue Decline: Slowdown in the domestic construction market and reduced investment by major clients.
- Operating Profit Growth: Effective cost management and enhanced profitability initiatives.
- New Business Venture Rationale: Diversification of business portfolio and securing future growth engines.
3. SEBO E&C’s Future Outlook?
In the short term, SEBO E&C’s positive earnings report is expected to create upward momentum for its stock price. While the medium to long-term outlook carries uncertainties related to the construction market, the company’s new ventures and potential recovery in the semiconductor market could act as positive catalysts.
4. Investor Action Plan?
Considering the current stock price, the investment recommendation is ‘Neutral’. While there’s potential for short-term gains, investors should carefully consider the risks associated with the construction market slowdown. Closely monitoring the performance of the new business venture and new order wins is crucial for informed investment decisions.