1. IL Science H1 2025 Earnings: What Happened?

IL Science reported KRW 28.9 billion in revenue for H1 2025, exceeding market expectations. However, the company continued to struggle with profitability, posting an operating loss of KRW 2.4 billion and a net loss of KRW 1.2 billion. Revenue decreased significantly compared to the same period last year, with increased R&D and SG&A expenses contributing to the decline in profitability.

2. Analyzing the Earnings Miss: Why Did This Happen?

IL Science’s underperformance is attributed to a combination of factors. Declining revenue, coupled with a decreasing trend in R&D investment, an increase in the number of shares due to convertible bond conversions, and increased costs associated with investments in new businesses are key contributors. Externally, macroeconomic factors such as exchange rate fluctuations, interest rate hikes, and raw material price volatility also played a role.

3. Future Outlook and Investment Strategy: What’s Next?

IL Science is investing in new businesses, such as mobility and secondary battery materials, to secure long-term growth drivers. However, negative factors such as declining profitability and financial risks currently outweigh the positives. Short-term volatility in stock price is likely, while the success of new businesses and improvement in financial structure will be key variables in the medium to long term.

4. Action Plan for Investors

  • Short-term Investment: Caution is advised. Be mindful of short-term price volatility.
  • Mid-to-Long-term Investment: Closely monitor the performance of new businesses and improvements in financial structure.