1. Sungchang Enterprise Holdings H1 2025: A Deep Dive into the Numbers

Sungchang Enterprise Holdings reported a consolidated revenue of KRW 65.094 billion in H1 2025, a staggering 54.5% decline year-over-year. Operating losses continued, reaching KRW -3.635 billion. All major business segments, including plywood, PB, and woodchips, experienced revenue contractions.

2. Unpacking the Decline: What Went Wrong?

External Factors: A downturn in the construction sector dampened demand, while global instability and currency fluctuations drove up raw material prices. Increased imports of low-priced PB further intensified competition.
Internal Factors: Weakening competitiveness in core business segments and a heavy reliance on imported raw materials compounded the challenges. The divestiture of the semiconductor inspection equipment business also contributed to the revenue decline.

3. Sungchang’s Response and Future Outlook: Charting a Course Forward

Sungchang is actively working to improve its financial structure, as evidenced by a narrowing operating loss, positive operating cash flow, and improved capital procurement ratio. However, overcoming the sluggish performance of its core businesses is crucial. Strategies like developing high-value-added products, cost reduction, and new business development are key to strengthening competitiveness.

4. Investor Action Plan: Navigating the Uncertainty

The current investment recommendation is “Speculative Buy.” Rather than short-term plays, investors should adopt a long-term perspective, closely monitoring the company’s restructuring efforts, identification of new growth drivers, and profitability improvements. Key factors to watch include stabilization of raw material prices and supply, signs of recovery in the construction sector, and progress in new business development and diversification.