1. What Happened? : Datasolution’s H1 2025 Earnings Breakdown

Datasolution recorded KRW 22.6 billion in revenue for H1 2025, showing year-over-year growth. However, operating profit and net income declined to KRW 300 million and KRW 500 million, respectively, due to increased cost of sales and SG&A expenses. Concerns also arise regarding financial health, with negative operating cash flow and increasing inventory.

2. Why Did This Happen? : Reasons Behind the Decline and the Diversification Strategy

The decline in profitability is linked to a decrease in product (H/W) sales and an increase in service (SI, maintenance) sales. While this shift aligns with IT market trends, service revenue typically yields lower margins. In response, Datasolution is pursuing new growth avenues through diversification into e-commerce and R&D, leveraging existing IT and data analysis capabilities. The entry into the high-growth e-commerce market is particularly promising.

3. What’s Next? : Future Outlook and Investment Considerations

Short-term recovery appears challenging. However, the mid-to-long-term outlook hinges on the success of these new ventures. Successful integration and improved profitability in existing businesses could fuel positive growth. Improving profitability, cost efficiency, and stabilizing financial structure are also crucial.

4. What Should Investors Do? : Action Plan

Investors should closely monitor the progress of the new ventures and track profitability improvements. A long-term perspective, focusing on growth potential rather than short-term market fluctuations, is crucial for developing a sound investment strategy.