1. What Happened?: Iljin Power Q2 Earnings Analysis
Iljin Power maintained stable growth in Q2 2025, with a slight increase in revenue compared to the same period last year. The solid performance of the power generation business drove growth, but the widening losses in the nuclear business are a concern.
2. Why?: Analyzing the Causes of Earnings Fluctuations
- Power Generation Business: Steady growth driven by increasing demand for maintenance of aging and new power plants.
- Nuclear Business: Widening losses due to investments in overseas nuclear power plant construction and SMR-related technology development.
- New Growth Business: Investments are underway to secure future growth engines such as fuel cells and hydrogen plants, but no revenue has been generated yet.
- Chemical/Plant Division (Iljin Energy): Stable revenue through stable order management.
3. So What?: Future Outlook and Investment Strategies
Iljin Power is pursuing business diversification into nuclear and renewable energy based on its stable power generation business. While the long-term growth potential is high, the key variables are whether the nuclear business can improve profitability and whether the new growth businesses can show tangible results. Currently, a ‘wait-and-see’ approach is recommended, with close monitoring of new business performance and market environment changes.
4. Investor Action Plan
Investors should consider the following factors when making investment decisions:
- Whether the nuclear business can improve profitability
- Performance of new growth businesses
- External environmental factors such as global economic slowdown, raw material price volatility, and exchange rate fluctuations
Careful monitoring and adjusting investment timing are crucial.