1. YAS (255440) 2025 Half-Year Performance Analysis: What Happened?
YAS recorded sales of KRW 10.178 billion (down 27.5% year-on-year) and an operating loss of KRW -8.876 billion (widening loss) in the first half of 2025. Preliminary earnings also revealed sales of KRW 6.1 billion, exceeding expectations, but an operating loss of KRW -4.1 billion, significantly below the expected KRW 0 billion.
2. What are the Reasons for the Poor Performance?
The primary causes are analyzed as increased investment in new businesses (semiconductor equipment) and technology development costs. The high R&D expenses, amounting to 34.98% of sales, represent investments to secure future growth engines but have acted as a factor in deteriorating short-term profitability. Furthermore, the increase in long-term obsolete inventory related to Projects A and B raises concerns about liquidity management.
3. So, What Does the Future Hold for YAS?
In the short term, addressing the sluggish performance and inventory issues is urgent. However, in the long term, attention should be paid to the growth potential stemming from the expanding OLED market and entry into the semiconductor equipment market. In particular, winning a contract with overseas company A is a positive sign demonstrating YAS’s technological capabilities.
4. What Actions Should Investors Take?
The investment opinion is ‘neutral’. While the growth of the OLED market, entry into the semiconductor equipment market, and technological prowess are positive factors, the continuous operating losses, high R&D costs, obsolete inventory, and intensifying competition represent investment risks. Investors should closely monitor future performance improvements, the realization of new business achievements, inventory management efficiency, and changes in the competitive landscape.