1. Q2 2025 Performance: A Mixed Bag

ILJI Tech reported revenue of KRW 421.9 billion in Q2 2025, an 11.5% increase year-over-year. Notably, US market sales surged by an impressive 54.6%, driving overall growth. However, operating profit declined by 25% to KRW 18.4 billion, with operating margin also slightly down at 4.36%. This is attributed to increased SG&A and financial expenses.

2. US Market Growth: Drivers and Sustainability

The remarkable growth in the US market validates ILJI Tech’s international expansion strategy. However, the sustainability of this growth needs careful consideration. Factors like the strengthening Korean Won could negatively impact US market revenue.

3. Profitability: Key to Future Growth

ILJI Tech is investing heavily in R&D to secure future growth engines. The development of technologies utilizing diverse materials like steel, aluminum, magnesium, and carbon fiber, along with dissimilar material joining technology, demonstrates proactive adaptation to future automotive market trends. However, the high debt-to-equity ratio (274.38%) and low operating margin highlight the need for continuous improvement in profitability.

4. Investor Action Plan

Investing in ILJI Tech requires careful consideration of both the opportunities presented by US market growth and technological competitiveness, as well as the challenge of improving profitability. Before making an investment decision, closely monitor the performance of the international expansion strategy, tangible results from technology development, and the implementation of profitability improvement plans.