1. What Happened at Daesung Finetec?

Daesung Finetec reported a net loss of 40 billion KRW in its H1 2025 earnings. Revenue decreased compared to the same period last year, and operating income remained negative. Financial costs and losses from derivative valuations were identified as the primary causes.

2. Why the Poor Performance?

While the core Fine Blanking division is growing thanks to the automotive industry recovery, the underperformance of the solar thermal and night-time electricity businesses within the Renewable Energy division is holding the company back. Increased financial expenses due to higher debt levels also contributed to the losses.

3. What’s Next for Daesung Finetec?

In the short term, the significant losses and declining profitability are likely to dampen investor sentiment. However, there are positive factors to consider, such as the steady growth of the Fine Blanking division, the potential of the solar power business, the change in majority ownership, and the proposed merger with Monolith.

4. What Should Investors Do?

Investing in Daesung Finetec currently carries high risk. Investors considering Daesung Finetec should carefully monitor profitability, debt management, the effectiveness of the merger, and macroeconomic factors. A conservative approach is recommended, focusing on whether these positive factors translate into tangible improvements in the company’s value.