1. Amotech Q2 2025 Performance: What Happened?

Amotech reported sales of KRW 59.4 billion, operating profit of KRW 1.2 billion, and net profit of KRW 7 billion in Q2 2025. While sales and operating profit fell short of market expectations, net profit showed significant improvement, leading to a return to profitability.

2. Why the Fluctuations?

Declining sales are attributed to an overall market slowdown and weaker sales of key products. Decreased operating profit stems from lower sales and rising raw material costs. Conversely, improved net profit is likely due to one-off gains and foreign exchange gains from a stronger KRW.

3. What’s Next? – Investor Analysis

Positive aspects include the return to profitability and growth potential in the MLCC business. However, declining sales and operating profit, reduced production capacity, and exchange rate and interest rate volatility pose risks. The success of the MLCC business will be a crucial determinant of future stock performance.

4. Investor Action Plan: What Should You Do?

  • Monitor MLCC business performance and profitability improvement trends.
  • Identify the causes of declining operating profit and monitor the company’s efforts to improve profitability.
  • Observe the performance of the BLDC motor and antenna components business, considering the growth of the automotive electronics market.
  • Review foreign exchange hedging strategies and financing plans, taking into account exchange rate and interest rate fluctuations.
  • Monitor the efficiency of R&D investment to secure future growth drivers.