1. What Happened? Key Takeaways from the H1 2025 Earnings Report
Chunbo reported revenue of KRW 33 billion (a 7.9% YoY decrease), operating profit of KRW 2.8 billion (a 106% increase), and a net loss of KRW 5.8 billion for H1 2025. The decline in revenue and operating losses within the battery materials segment significantly impacted overall performance.
2. Why Did This Happen? Analyzing the Reasons for Underperformance
- ▪ Increased competition and slowing demand in the battery materials market
- ▪ Delays in LiFSI production capacity expansion and initial operating costs
- ▪ Rising raw material prices and increasing financial expenses
3. What’s Next? Outlook and Investment Strategies
Short-term downward pressure on the stock price is likely. However, the mid-to-long-term outlook depends heavily on the turnaround of the battery materials segment, including the ramp-up of the Saemangeum plant and the effectiveness of new production methods. The stable profitability of the electronic materials segment is a positive factor.
4. What Should Investors Do? Action Plan
- ▪ Closely monitor the performance improvement of the battery materials business.
- ▪ Maintain a conservative investment strategy, considering potential short-term volatility.
- ▪ Review the Q3 2025 earnings announcement and conference call details.
- ▪ Continuously analyze competitor activities and market conditions.