1. Interflex (051370) Q2 2025 Earnings: What Happened?
Interflex announced its Q2 2025 earnings on August 14th, reporting KRW 85.7 billion in revenue (-22% YoY), KRW 1.7 billion in operating profit (beating estimates but significantly down YoY), and a net loss of KRW 0.1 billion. The disappointing results, falling far short of market expectations, have raised concerns among investors.
2. Why These Results?
- • Global economic slowdown, maturing smartphone market, and intensified competition in the FPCB industry.
- • Deteriorating cost structure due to rising raw material prices and increasing operating expenses.
- • Increased fixed cost burden and reduced production efficiency due to low utilization rates at the parent company’s smart center.
3. What’s Next?
In the short term, downward pressure on the stock price due to poor performance is likely to persist. However, Interflex holds over KRW 100 billion in cash and cash equivalents, mitigating short-term financial risks.
In the mid-to-long term, Interflex is seeking growth drivers through the acquisition of KOREA CIRCUIT VINA CO., LTD and expansion into new businesses. The future of Interflex hinges on the recovery of the FPCB market, demand changes from key customers, and the success of these new ventures.
4. Investor Action Plan
Investors should closely monitor Interflex’s future earnings improvements, tangible results from new businesses, and cost optimization efforts. A long-term perspective, focusing on the company’s business restructuring and profitability improvement efforts, is crucial rather than reacting to short-term stock price fluctuations.
Frequently Asked Questions
How did Interflex perform in Q2 2025?
Interflex reported KRW 85.7 billion in revenue (-22% YoY), KRW 1.7 billion in operating profit (down YoY), and a net loss of KRW 0.1 billion.
What are the reasons for the poor performance?
A combination of factors contributed, including the global economic slowdown, maturing smartphone market, increased competition, rising raw material prices, higher operating expenses, and low utilization rates.
What is the outlook for Interflex?
While downward pressure on the stock price is expected in the short term, the company’s new business ventures offer mid-to-long-term growth potential. A turnaround is possible depending on market conditions and the company’s efforts.