1. H1 2025 Earnings Analysis: What Happened?

Sammok S-Form’s H1 2025 revenue decreased by 19% year-on-year to 170.3 billion KRW, and operating profit plummeted by 68% to 16.4 billion KRW. This fell short of market expectations, and the construction slowdown and decrease in orders are analyzed as the main causes.

2. Analysis of the Earnings Decline: Why These Results?

In addition to the construction downturn, declining unit prices of aluminum forms and panel forms, rising raw material (ingot) prices, and increasing SG&A expenses combined to exacerbate the decline in profitability. The high debt ratio (111.24%) is also acting as a financial burden.

3. Investment Strategy: What Should We Do?

Short-term Investment Strategy: Neutral
High volatility is expected in the short term, so a wait-and-see approach is recommended. Consider staggered purchases on further declines, but a cautious approach is necessary.

Mid-to-Long-term Investment Strategy: Buy
In the long term, benefits from the construction market recovery can be expected. Based on its overwhelming market share and technological prowess, a rapid earnings improvement is anticipated upon market recovery.

4. Investment Considerations: What to Watch Out For

  • • Continuously monitor construction market trends and government policy changes.
  • • Pay attention to the company’s future growth drivers, such as cost management, new market development, and overseas business expansion.
  • • Be mindful of macroeconomic variables such as interest rate and exchange rate volatility.