1. Nanoshinsojae 2025 Half-Year Results: Key Analysis

Nanoshinsojae’s Q2 2025 revenue was 29.3 billion KRW, meeting market expectations. Operating profit of 1.8 billion KRW exceeded expectations. However, a net loss of 1.9 billion KRW shocked the market. This is largely attributed to non-operating losses, particularly from foreign exchange fluctuations and derivative valuation losses.

2. Growth Analysis by Business Segment: Steady Growth in Secondary Battery Materials

The secondary battery materials sector, Nanoshinsojae’s core growth driver, maintained robust growth with an 18.3% increase year-on-year. The operation of new plants in the US and Poland is expected to further accelerate future growth. Conversely, sales in the display, semiconductor, and solar cell material sectors declined due to market downturn.

3. Financial Risk Analysis: Causes of Net Loss and Solutions

Despite improved operating profit, the main causes of the net loss are non-operating losses, including foreign exchange fluctuations and derivative valuation losses. Increased SG&A and R&D expenses, as well as higher financing costs, also contributed to the decline in profitability. Nanoshinsojae needs to strengthen its foreign exchange and derivatives risk management strategy and improve cost efficiency to enhance profitability.

4. Investment Strategy Recommendations: Short-Term Risk Management and Long-Term Growth Momentum

  • Short-term strategy: Focus on improving profitability through foreign exchange and derivatives risk management and cost efficiency.
  • Mid- to long-term strategy: Expand investment in the secondary battery materials business, stabilize new plants, diversify business, and strengthen financial soundness.

Nanoshinsojae has long-term growth potential based on the growth potential of its secondary battery materials sector. However, current deteriorating profitability and financial burden pose investment risks. In the short term, the company should focus on improving performance, while in the mid- to long term, it should pursue sustainable growth by strengthening its business portfolio and securing financial soundness.