1. What Happened? H1 2025 Earnings Overview

ABprobio reported consolidated revenue of KRW 17.98 billion in H1 2025, a significant increase year-over-year. However, operating income was -KRW 2.5 billion, and net income plunged to a substantial -KRW 44.3 billion.

2. Why the Underperformance? Dissecting the Results

The main culprits behind the net loss are losses from biopharma investments, increased financial expenses, and impairment losses. The high R&D costs, lengthy development timelines, and inherent uncertainties of the biopharma segment are key factors.

  • Machine Tools: Intensifying market competition and price/technology pressures pose challenges.
  • Biopharma: While there are hopes for the anticancer and macular degeneration treatments, the financial burden of potential development failures is substantial.
  • Semiconductor Equipment: Market growth potential is high, but high entry barriers and rapid technological change are hurdles.

3. What’s Next? Outlook and Investment Strategies

ABprobio’s future hinges on the success of its biopharma ventures. Short-term financial restructuring is crucial, while long-term success depends on successful drug development and strengthening competitiveness in the machine tool segment.

4. Investor Action Plan: Navigating the Uncertainties

Currently, a “hold” or “cautious review” is recommended. Closely monitor clinical trial results, the return to operating profitability, and debt reduction efforts.