1. What Happened? H1 2025 Earnings Overview
TEMC CNS recorded sales of KRW 85.142 billion, operating profit of KRW 7.03 billion, and net income of KRW 2.215 billion in the first half of 2025. While the chemical (specialty gas) segment saw a 44.6% YoY decline to KRW 26.768 billion due to the semiconductor downturn, the equipment segment achieved KRW 41.865 billion in sales, driven by increased demand for secondary battery equipment. Operating profit increased by 18.67% YoY thanks to cost-cutting efforts, but net income decreased due to foreign exchange losses.
2. Why These Results? Segment Analysis and Market Environment
2.1 Reasons for Chemical Segment Decline
The semiconductor downturn and customer inventory adjustments are the main causes of the decline in the chemical segment.
2.2 Drivers of Equipment Segment Growth
Robust growth in the secondary battery equipment business and increased orders for C.E.S.S equipment drove growth in the equipment segment.
2.3 Macroeconomic Environment Analysis
The rise in the KRW/USD and KRW/EUR exchange rates could negatively impact profitability by increasing raw material import costs. Also, intensifying competition in the secondary battery market could put pressure on prices and margins.
3. What’s Next? Fundamental Impact Analysis and Outlook
TEMC CNS’s strengths lie in the growth potential of its secondary battery business and its stable financial structure. However, uncertainties in the semiconductor industry and exchange rate volatility can act as risk factors. The key variables will be the recovery of the semiconductor industry and the intensifying competition in the secondary battery market.
4. Investor Action Plan: Investment Strategies
Investors should closely monitor the growth of TEMC CNS’s secondary battery business and the possibility of a semiconductor industry recovery. They should also pay attention to risk factors such as exchange rate and raw material price volatility, and intensifying competition in the secondary battery market.