1. What Happened at Haesung DS?
Haesung DS reported revenue of KRW 157.3 billion (YoY decrease, beat expectations), operating profit of KRW 8.2 billion (YoY decrease, met expectations), and a net loss of KRW 0.4 billion (red ink, significantly missed expectations) for H1 2025. The net loss, in particular, sent shockwaves through the market.
2. Why the Underperformance?
Despite higher-than-expected revenue, a significant decline in operating margin and foreign exchange losses led to the net loss. A combination of factors, including declining sales in the Package Substrate segment, rising raw material prices, and increased production costs, contributed to the poor results.
3. What’s Next for Haesung DS?
- Short-term Outlook: The outlook for H2 2025 remains uncertain. Preventing further foreign exchange losses and recovery in the Package Substrate segment are key.
- Long-term Outlook: Growth in the automotive semiconductor market is positive, but profitability improvement is crucial.
4. What Should Investors Do?
- Remain Conservative: Be mindful of potential short-term downward pressure on the stock price.
- Monitor Key Variables: Keep a close eye on the Package Substrate segment’s recovery, profitability improvement efforts, and fluctuations in exchange rates and raw material prices.