What’s Happening with TP Corporation?

TP Corporation reported a 51.5% year-over-year decrease in consolidated revenue to 515.3 billion KRW in the first half of 2025. Operating profit also declined by 45.6%, marking the second consecutive year of deteriorating profitability. The company’s core apparel business (88.7% of revenue) has been directly impacted by the global economic slowdown, and the downturn in the down clothing business has worsened.

What are the Underlying Causes?

TP Corporation’s challenges are not solely attributed to the temporary economic downturn. Structural issues, including high dependence on overseas markets (83.35% export ratio), increasing debt (total debt of 549.7 billion KRW, up 7.7% from the end of last year), low R&D investment (0.23% of sales), and reliance on major customers (top 2 customers account for 21.4% of sales), are compounding the difficulties. External factors, such as the rising KRW/USD exchange rate, can also negatively impact profitability.

So, What Should Investors Do?

TP Corporation needs to proactively address profitability improvement, financial stability, and securing new growth engines. In the short term, the focus should be on cost reduction and debt management. In the long term, increasing R&D investment, exploring new business opportunities, and diversifying the customer base are crucial for sustainable growth. Decisions regarding treasury stock buybacks or cancellations can positively influence the stock price.

Investor Action Plan

  • Short-term investors: Closely monitor changes in financial indicators and management’s response strategies, while being mindful of short-term stock price volatility.
  • Long-term investors: Evaluate the company’s efforts to improve its business structure and assess its long-term growth potential before making investment decisions.