1. What Happened? ABKO’s H1 2025 Earnings Release

ABKO reported revenue of KRW 15.8 billion, operating profit of KRW 800 million, and net income of KRW 800 million for H1 2025. This is a substantial improvement, especially considering the market’s zero earnings expectation.

2. Why This Result? Analyzing the Drivers

The earnings surprise is partly attributed to low market expectations. However, the improved operating margin compared to Q4 2024 and Q2 2024 is a positive sign. On the other hand, both revenue and profit are still down year-over-year.

  • Positive Factors: Low market expectations, improved operating margin compared to the previous quarter
  • Negative Factors: Year-over-year decline in revenue and profit, continued inventory increase and debt burden

3. What’s Next? Outlook and Investment Strategy

While there is short-term momentum for stock price appreciation, the mid-to-long-term outlook requires further observation. The success of new businesses, inventory management, and debt reduction are key monitoring points.

  • Short-term Investment Strategy: Capitalize on positive momentum, maintain a short-term perspective (Neutral)
  • Mid-to-long-term Investment Strategy: Monitor earnings sustainability and new business performance (Hold)

4. Investor Action Plan: Key Checklist

Before making any investment decisions, be sure to check the following:

  • Next quarter’s earnings results
  • Progress and performance of new businesses
  • Improvements in inventory management
  • Debt ratio management status