1. What Happened at Homecast?
Homecast reported dismal H1 2025 results with revenue of ₩8 billion, operating loss of ₩3.66 billion, and a net loss of ₩7.5 billion. Revenue drastically decreased year-over-year, and profitability significantly deteriorated.
2. What Caused the Decline?
The main factors contributing to the poor performance are the sluggish electronic components distribution business and the discontinued operations of CSA Cosmic (cosmetics and construction materials). The delayed payment and injunction filed regarding the sale of CSA Cosmic further add to the uncertainty. Past investment losses and goodwill impairment issues also pose challenges.
3. So, What’s the Future of Homecast?
Despite the negative factors, there are some positive signs. The debt-to-equity ratio has slightly improved, and the venture into the medical devices/pharmaceuticals market for cosmetic and plastic surgery purposes could be a new growth engine. However, the success of the new business remains uncertain, and resolving the uncertainties surrounding the sale of CSA Cosmic is crucial.
4. What Should Investors Do?
- Short-term Investment: Investors should approach cautiously, closely monitoring the CSA Cosmic sale situation and the possibility of short-term earnings improvement.
- Mid- to Long-term Investment: Evaluate the growth potential of the new business and the recovery of the electronic components distribution business. Continuous monitoring of financial soundness and market conditions is necessary.