1. What Happened? Q2 2025 Earnings Breakdown

Daejin Advanced Materials reported Q2 2025 revenue of ₩12.3B, an operating loss of ₩4.8B, and a net loss of ₩10.2B, significantly missing market expectations. Compared to Q1 2025, revenue decreased by 39.1%, and both operating and net income swung to losses.

2. Why Did This Happen? Analyzing the Decline

The primary driver of the decline was a sharp drop in sales of materials for secondary battery processes and automotive components. The company has been directly impacted by the slowdown in the global electric vehicle market and the overall economic downturn, referred to as a ‘chasm’ in key industries.

3. What’s Next? Short-Term and Long-Term Outlook

  • Short-term: Negative impacts are expected, including downward pressure on the stock price, increased financial risks, and weakened investor sentiment.
  • Long-term: The success of the company’s CNT business will be crucial. Efforts to improve financial structure and adaptability to changing market conditions will also be key factors.

4. What Should Investors Do? Key Investment Considerations

  • Investors should carefully consider the timing of an earnings turnaround, the visibility of CNT business performance, financial health management, macroeconomic and industry environment changes, and market share and competitive landscape.
  • A cautious approach, observation, or a dollar-cost averaging strategy is recommended at this time.