1. Aminologics H1 2025 Performance: Key Findings
Aminologics recorded KRW 4.7 billion in revenue and KRW 0.2 billion in operating profit for H1 2025, marking a significant decline. Revenue decreased by 54.7% year-over-year, and operating profit also shrank. The core amino acid business continues to struggle, and the raw material medicine segment also performed poorly.
2. Reasons for Underperformance: What Went Wrong?
- Struggling Amino Acid Business: Intensifying competition and high customer dependency continue to drag down amino acid sales.
- Convertible Bond Issuance: While the KRW 20 billion convertible bond issuance provided liquidity, it significantly increased debt-to-equity ratio, raising financial risks.
3. Peptide Drug Market Entry: Opportunities and Risks
Aminologics aims to secure future growth by entering the peptide drug market. However, competition is fierce, and R&D investments carry inherent uncertainties.
4. Investor Action Plan: Key Monitoring Points
- Amino Acid Business Turnaround: Monitor the company’s strategies for developing new high-value-added products and diversifying its customer base.
- Use of Convertible Bond Proceeds: Assess whether R&D investments and business diversification efforts can enhance corporate value.
- Peptide Drug Development Progress: Continuously monitor the company’s technological competitiveness and the specifics of its market entry plan.
- Financial Health Management: Scrutinize Aminologics’ plans for addressing the maturity and interest burden of the convertible bonds.