1. What Happened at Unionbiometrics?

Unionbiometrics recorded sales of KRW 24.671 billion (a 24.7% increase year-on-year), operating profit of KRW 501 million (turning to profit), and net income of KRW 718 million (turning to profit) in the first half of 2025. Growth in the domestic market was the main driver of the sales increase.

2. What Drove the Return to Profitability?

Increased sales and cost optimization efforts were the main factors contributing to the return to profitability. Additionally, proactive investments in future growth engines, such as expansion into overseas markets (establishment of a UAE subsidiary) and new business ventures (pet biometrics), also had a positive impact.

3. So, Should You Invest?

Both positive and negative aspects need to be considered.

  • Positive Factors: Successful turnaround, growth potential of new businesses, shareholder return policy (treasury stock acquisition)
  • Negative Factors: Low operating profit margin (2.03%), decrease in cash and cash equivalents, decline in ROE and EPS

In short, while the turnaround is successful, sustainable growth requires improved profitability and the successful establishment of new businesses.

4. Investor Action Plan

A medium- to long-term approach is recommended, closely monitoring profitability improvement trends and the performance of new businesses. Pay particular attention to the performance of the pet biometrics market entry and the UAE subsidiary’s overseas market expansion strategy.