1. What Happened? RF Semi’s H1 2025 Earnings
RF Semi reported sales of 5.9 billion KRW, operating profit of 400 million KRW, and net income of 300 million KRW for the first half of 2025, marking a return to profitability. This exceeded market expectations. However, sales of its main product, ECM semiconductors, decreased significantly year-over-year, and the LED lighting division also continued to struggle.
2. Why Did This Happen? Profitability Drivers and Delisting Risk
The main drivers of the return to profitability were a decrease in selling, general, and administrative expenses (SG&A), an increase in other income, and a decrease in financial expenses. Despite these positive factors, the risk of delisting due to a qualified audit opinion in 2024 remains. The results of the delisting review are expected on August 31st and will be a critical factor determining the stock’s future.
3. What’s Next? RF Semi’s Future and Investment Strategy
The delisting decision will determine RF Semi’s future. If the company avoids delisting, short-term stock price gains are possible. However, delisting could result in significant losses for investors. In the long term, recovery of the main business segments, performance of new businesses such as the foundry business, securing financial soundness, and improving management transparency are crucial.
4. Investor Action Plan
Investing in RF Semi is currently very risky. Investment decisions should be made carefully, considering the possibility of delisting. Avoid short-term investment. Even if the company avoids delisting, a thorough analysis of its fundamentals is crucial. For long-term investors, continuous monitoring of the delisting risk, main business recovery, and new business performance is essential.