What Happened?

Green Resources signed a ₩2 billion short-term (3-month) supply contract with Miracle Energy on September 10, 2025, for palm mixture. This represents a significant 10.93% of Green Resources’ recent quarterly revenue.

Why Does This Matter?

This contract is positive for potential short-term revenue growth. However, its short duration and focus on a specific product (palm mixture) raise questions about its long-term impact. The apparent lack of connection to Green Resources’ core businesses (semiconductor coating materials and superconducting wire equipment) is also a consideration.

What’s Next?

  • Revenue and Profitability: Short-term revenue increase is expected, but sustainability is uncertain. Profitability depends on the contract’s margin.
  • Financial Structure: ₩2 billion in revenue is positive, but insufficient to resolve existing financial challenges.
  • Business Expansion: Palm mixture could be a new growth driver, but more information is needed.
  • Market Environment: The competitive landscape and growth potential of the palm mixture market are unclear.
  • Stock Price Impact: A significant short-term surge is unlikely; existing business performance and financial health improvements are key.

What Should Investors Do?

  • Monitor Contract Implementation and Performance: Track actual delivery rates, profitability, etc.
  • Assess Business Diversification: Determine the sustainability of the palm mixture venture and its synergy with existing businesses.
  • Focus on Existing Business Performance and Financial Health: Monitor performance in semiconductor coatings and superconducting wire equipment, and improvements in financial structure.