1. Duksan Hi-Metal Q2 Earnings: An Earnings Surprise!
Duksan Hi-Metal recorded sales of KRW 57.4 billion, operating profit of KRW 2.5 billion, and net income of KRW 1.1 billion in Q2 2025, significantly exceeding market expectations (KRW 0). Although these figures are down year-on-year, they signal a rapid recovery from the sluggish performance in Q1.
2. Drivers of Improved Performance: Core Business Competitiveness and New Business Growth
The main drivers of this earnings improvement are the robust demand growth for solder balls and solder paste for semiconductor packaging, the company’s core business. In particular, the advancement of ultra-precise micro solder ball technology below 130 microns further enhances the company’s future growth potential. Furthermore, the expansion of new businesses at subsidiaries Duksan NepCores (defense/aerospace) and Duksan Ethercity (gas/hydrogen tanks) is expected to act as a long-term growth momentum.
3. Investment Considerations: Consolidated Financial Status and Market Volatility
We can’t just focus on the positives. Due to factors like the suspension of operations at overseas subsidiaries, the consolidated financial status remains unstable. The potential for a global economic slowdown and volatility in the semiconductor market are also important risk factors to consider when investing.
4. Investment Strategies: Focusing on Short-Term Momentum and Long-Term Growth Potential
In the short term, there is a high possibility of stock price increase thanks to the momentum from the improved performance in Q2. However, for sustained growth, improvements in the consolidated financial status and tangible results from new businesses are essential. It is crucial to make investment decisions by continuously monitoring the timing of the semiconductor market recovery and the performance of business diversification from a long-term perspective.