1. What Happened?: Paru’s H1 2025 Earnings Decline
Paru reported sales of KRW 12.92 billion (a 31.8% decrease YoY), an operating loss of KRW -2.281 billion (shifting to a loss), and a net loss of KRW -3.091 billion (widening loss) for the first half of 2025. The poor performance is primarily attributed to the sluggish solar business and increased SG&A expenses.
2. Why Did This Happen?: Market Conditions and Profitability Issues
- Domestic Solar Market Slump: Intensified competition and cost structure issues are hindering profitability.
- Global Solar Market Slowdown: Export performance remains weak due to the impact of the global economic downturn.
- Increased SG&A Expenses: Aggressive business expansion has led to a surge in selling, general, and administrative expenses.
3. What’s Next?: Short-term/Long-term Outlook and Challenges
In the short term, profitability improvement, cash flow management, and overseas market performance are crucial variables. A turnaround through sales growth and cost reduction is urgent.
In the long term, growth in the hygiene solutions business, securing new growth engines, and continuous R&D investment to strengthen technological competitiveness are necessary.
4. What Should Investors Do?: Proceed with Caution
Paru is currently facing a serious management crisis. The poor performance and financial deterioration are likely to negatively impact the stock price. Investors should carefully examine the company’s turnaround strategy and maintain a cautious and conservative investment approach.
How was Paru’s performance in the first half of 2025?
Paru reported weak performance with sales of KRW 12.92 billion, an operating loss of KRW -2.281 billion, and a net loss of KRW -3.091 billion.
What are Paru’s main business segments?
Paru’s core businesses are solar energy and hygiene solutions.
What is Paru’s current financial status?
Paru’s financial health has deteriorated due to increased debt and a higher debt-to-equity ratio.
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