1. What Happened?: Derami’s Deteriorating Performance
Derami’s H1 2025 earnings report revealed a sharp decline in revenue and a concerning operating loss. Q2 2025 preliminary results show revenue at ₩12.4 billion and an operating loss of ₩0.3 billion, a substantial decrease compared to the same period last year.
2. Why?: Struggles Across Business Segments
- Scrap Metal Distribution: Hit hard by fluctuating international market prices and decreased domestic demand.
- Cosmetics: Facing challenges from intensifying competition in the domestic market and rising raw material costs, despite efforts to increase overseas sales.
- Resort Business: Continues to underperform despite expectations of a post-pandemic recovery.
3. What’s Next?: An Uncertain Future – Investor Caution Advised
Derami is facing a significant management crisis, and a short-term recovery seems unlikely. The rising debt-to-equity ratio and declining current ratio further raise concerns about the company’s financial health. Investors should proceed with caution.
4. Investor Action Plan: Key Metrics to Watch
- Q3 2025 Earnings: Crucial for assessing the potential for a turnaround.
- Restructuring Efforts: Monitor specific strategic changes within each business segment.
- Macroeconomic Factors: Continuously track the impact of interest rate and exchange rate fluctuations.