1. What Happened? : Yangjisa’s Earnings Shock
Yangjisa’s 2025 financial report revealed ₩8.9 billion in revenue, accompanied by an operating loss of ₩4 billion and a net loss of ₩2.4 billion. This marks a return to negative territory after a brief period of profitability in Q4 2024, significantly underperforming market projections.
2. Why Did This Happen? : Analyzing the Decline
- Struggling Core Business: Sales in the printing and manufacturing sector declined by 3.9%, with overseas markets performing particularly poorly.
- Surging COGS and Financial Expenses: Rising raw material prices, increased interest burdens due to rising interest rates, and amplified foreign exchange losses.
- Burden of New Business Investments: Investments in new ventures led to an increase in tangible assets and a surge in short-term borrowings (₩10.4 billion), negatively impacting debt-to-equity and debt-to-asset ratios.
3. What’s Next? : Future Outlook and Investment Strategies
Yangjisa currently faces a triple threat: short-term performance woes, increasing financial burdens, and uncertainty surrounding new business ventures. The investment recommendation is ‘Neutral,’ suggesting a cautious approach.
- Earnings Turnaround: Requires improvement in core business profitability, cost reduction, and tangible results from new businesses.
- Improving Financial Health: Debt management, asset sales, or capital raising to reduce debt ratios.
- Enhanced Communication with the Market: Increasing management transparency and outlining future growth strategies.
4. What Should Investors Do? : Action Plan
Investors should focus on the company’s mid-to-long-term turnaround potential and financial health recovery, rather than short-term stock price fluctuations. Making investment decisions after observing concrete results from new businesses and improvements in financial indicators is recommended.