1. What Happened? : Q2 Earnings Analysis
Yunsung F&C’s Q2 2025 earnings fell significantly short of market expectations. Sales were 28.9 billion won, with an operating loss of 5.6 billion won and a net loss of 9.4 billion won, showing a significant decline year-over-year.
- Plummeting Sales: Sales dropped by more than half compared to the same period last year due to decreased demand for secondary battery equipment.
- Operating Loss: Fixed cost burdens resulted in an operating loss.
- Expanding Net Loss: Non-operating losses widened the net loss.
2. Why Did This Happen? : Reasons for the Earnings Decline
The ‘chasm’ phenomenon in the EV market, which began in 2024, continued to dampen investments by secondary battery manufacturers, leading to a decrease in orders for Yunsung F&C’s equipment. Macroeconomic uncertainties, such as high interest rates and exchange rate volatility, also contributed to the earnings decline.
3. What’s Next? : Future Outlook and Investment Strategies
Short-term volatility is expected due to weak earnings and uncertainty surrounding the convertible bond issuance. However, there are positive factors in the long term.
- Long-term Growth Potential of the EV Battery Market: The EV market is expected to grow in the long run, which could present opportunities for Yunsung F&C.
- New Business Initiatives: Ventures into new businesses like battery recycling and renewable energy may secure new growth drivers.
4. What Should Investors Do? : Action Plan
Short-term investors should wait and see, while long-term investors should carefully monitor market recovery and the company’s performance in new business areas before making investment decisions.
- Short-term investors: Wait and see
- Long-term investors: Monitor market conditions and company performance before investing