1. What Happened? Q2 Earnings Breakdown
CNC International reported revenue of KRW 73.8 billion, operating profit of KRW 8.6 billion, and net profit of KRW 1.2 billion in Q2 2025. While revenue showed recovery, increasing by 11.8% QoQ, and operating profit exceeded expectations, net profit plummeted by 84% YoY, falling far short of estimates.
2. Why Did This Happen? Analyzing the Earnings Fluctuations
The reason for the sharp decline in net profit remains unclear, but potential factors include losses from financial investments or one-off expenses. The sales recovery is likely attributed to consistent demand for lip products and growth in the Chinese market.
3. What’s Next? Investment Strategies
The current investment recommendation for CNC International is ‘Hold.’ Before making any investment decisions, investors should carefully monitor the reasons behind the Q2 net profit decline, the outlook for H2 earnings, and the possibility of a change in majority shareholder. Short-term investments should be approached with caution, and it’s crucial to assess the company’s core business competitiveness and the likelihood of profit recovery.
4. Action Plan for Investors
- Analyze the reasons for the net profit decline and review official disclosures.
- Monitor future earnings forecasts and management announcements.
- Track changes in the macroeconomic and market environment.
- Conduct comparative analyses of competitor performance.