1. What Happened? Jeonbang’s Q2 Earnings Analysis
Jeonbang recorded KRW 11.7 billion in sales, KRW -2.9 billion in operating profit, and KRW -2 billion in net profit in Q2 2025, continuing its poor performance. The streak of losses, which began in Q4 2024, shows no signs of improvement, raising concerns for investors.
2. Why Did This Happen? Reasons for the Sluggish Performance
The main factors contributing to the weak earnings are a combination of rising costs, sluggish sales, and operational inefficiencies. In particular, the rising KRW/EUR exchange rate and volatility in the KRW/USD rate have negatively impacted profitability due to increased import/export costs. Fluctuations in international gold prices and declining oil prices also contributed to the volatility of raw material and energy costs, putting pressure on earnings.
3. What’s Next? Future Outlook and Investment Strategy
Current market expectations are low, and a short-term rebound in stock price is unlikely. However, there is potential for changes in management strategy, including increased treasury stock holdings. Investors should closely monitor efforts to improve profitability, new business ventures and diversification strategies, and responses to fluctuations in exchange rates and raw material prices.
4. Investor Action Plan
- Short-term investors: Caution is advised. Make investment decisions after confirming earnings improvement and turnaround potential.
- Mid- to long-term investors: Continuously monitor management strategy changes, new business ventures, and the company’s efforts to improve its fundamentals and achieve recovery.