1. What Happened? Deokshin EPC’s Q2 2025 Earnings Breakdown
Deokshin EPC reported weak Q2 2025 earnings, with revenue at ₩29.1 billion (an 80.1% decrease year-over-year), operating profit at ₩0, and a net loss of ₩200 million. The first half of 2025 also saw a 63% decline in revenue compared to the same period last year, totaling ₩54.2 billion. The decline in sales of its core integrated deck business is a primary contributor to this downturn.
2. Why Did This Happen? Analyzing the Factors Behind the Decline
The poor performance is attributed to external factors such as the prolonged downturn in the construction industry and volatility in raw material prices and exchange rates. Internally, increased borrowing and financial burden due to investments in new golf course/resort projects have negatively impacted performance. The debt-to-equity ratio has risen significantly to 82.45%, and the net debt-to-EBITDA ratio stands at 64.66%, raising concerns about financial health.
3. What’s Next? Outlook and Investment Strategy
In the short term, investor sentiment is likely to be negatively affected by the poor earnings and increased financial burden. However, there are positive factors, including the company’s proprietary technology, potential for overseas market expansion, and new business ventures. The success of these new ventures and the recovery of its core business competitiveness will be key determinants of the company’s value in the medium to long term.
4. What Should Investors Do?
- Short-term investors: Maintain a conservative outlook, closely monitor financial restructuring efforts.
- Long-term investors: Monitor the progress of new business ventures and changes in market competitiveness.
Deokshin EPC needs to regain market trust through transparent information disclosure, strengthening its core business competitiveness, and efficient fund management.