1. What Happened at Ubivelox?
In the first half of 2025, Ubivelox saw increased revenue but a decline in both operating and net profit. While revenue grew due to the growth of Thinkware and new business acquisitions, profitability deteriorated due to increased R&D expenses and financial costs. Furthermore, the increase in debt and borrowings poses a financial burden.
2. Why Did This Happen?
While the smart card business remains robust, the mobile business (including MyData) faces challenges such as intensifying competition and regulatory compliance. The black box and map business faces both opportunities from the expanding autonomous driving market and threats from intensifying competition in overseas markets. The newly entered environmental home appliances and tech accessories business is expected to grow, but caution is needed due to rapid trend changes and intensifying competition.
- Increase in Cost of Sales and SG&A Expenses: Increased costs due to expanded R&D investment and new business ventures.
- Decrease in Financial Income and Increase in Financial Costs: Increased interest expenses due to high borrowing levels.
3. So, What’s Next?
Ubivelox is pursuing growth through new business expansion, but improving profitability is a key challenge. The successful establishment of the MyData business, Thinkware’s overseas market entry, and securing competitiveness in new businesses will determine future growth. Furthermore, macroeconomic uncertainties, such as increased volatility in interest rates and exchange rates, are also key variables.
4. What Should Investors Do?
Investors should closely monitor Ubivelox’s efforts to improve profitability, debt management, new business performance, and changes in the macroeconomic environment. Focus on the long-term growth potential rather than short-term profitability decline, but pay attention to risk management.