Korea Stock Market Insights

Tag: Chasm

  • Daejin Advanced Materials Q2 2025 Earnings Disappoint: What Investors Need to Know

    1. What Happened? Q2 2025 Earnings Breakdown

    Daejin Advanced Materials reported Q2 2025 revenue of ₩12.3B, an operating loss of ₩4.8B, and a net loss of ₩10.2B, significantly missing market expectations. Compared to Q1 2025, revenue decreased by 39.1%, and both operating and net income swung to losses.

    2. Why Did This Happen? Analyzing the Decline

    The primary driver of the decline was a sharp drop in sales of materials for secondary battery processes and automotive components. The company has been directly impacted by the slowdown in the global electric vehicle market and the overall economic downturn, referred to as a ‘chasm’ in key industries.

    3. What’s Next? Short-Term and Long-Term Outlook

    • Short-term: Negative impacts are expected, including downward pressure on the stock price, increased financial risks, and weakened investor sentiment.
    • Long-term: The success of the company’s CNT business will be crucial. Efforts to improve financial structure and adaptability to changing market conditions will also be key factors.

    4. What Should Investors Do? Key Investment Considerations

    • Investors should carefully consider the timing of an earnings turnaround, the visibility of CNT business performance, financial health management, macroeconomic and industry environment changes, and market share and competitive landscape.
    • A cautious approach, observation, or a dollar-cost averaging strategy is recommended at this time.

    Frequently Asked Questions

    What are the main businesses of Daejin Advanced Materials?

    Daejin Advanced Materials operates in the secondary battery materials, automotive component materials, and CNT (Carbon Nanotube) sectors, with CNT being a key driver of future growth.

    Why were the Q2 2025 earnings disappointing?

    The decline is attributed to a downturn, or ‘chasm,’ in the secondary battery and automotive markets, which are key downstream industries for the company.

    What is the outlook for Daejin Advanced Materials’ stock price?

    The short-term outlook is negative, but there is potential for long-term growth depending on the success of their CNT business. A cautious approach to investment is advised.

  • Almex (354320) H1 2025 Earnings Analysis: Can it Overcome the EV Market ‘Chasm’?

    1. What Happened? Almex H1 2025 Earnings Analysis

    Almex reported sales of KRW 48.4 billion and operating profit of KRW 2.7 billion in its H1 2025 report. These figures represent a 12.8% and 35% increase year-over-year, respectively, and also show improvement compared to Q1. However, the consolidated net loss continued at KRW 0.4 billion, primarily attributed to the poor performance of its subsidiary, AR Aluminum. Standalone financials show a KRW 3.161 billion profit.

    2. Why These Results? Background and Cause Analysis

    Almex’s performance is closely linked to the ‘Chasm’ phenomenon in the EV market. The slowdown in EV market growth directly impacted Almex’s sales decline and profitability deterioration. Additionally, the low operating rates of Almex lines 2 and 5, and AR Aluminum, along with exchange rate volatility, also burdened performance.

    3. What’s Next? Future Outlook and Opportunities

    In the long term, the recovery of the EV market and Almex’s partnerships with global automakers are positive factors. Collaborations with Volkswagen, Audi, Porsche, and GM support Almex’s technological prowess and reliability. Continuous R&D investment is also expected to contribute to strengthening future competitiveness. However, the continuing ‘Chasm’ phenomenon, raw material price volatility, and intensifying competition remain risk factors.

    4. What Should Investors Do? Investment Strategies and Key Points

    • • Monitor the timing of the EV market recovery and changes in Almex’s market share.
    • • Analyze subsidiary performance improvement and its impact on consolidated earnings.
    • • Pay attention to efforts to improve production capacity utilization and efficiency.
    • • Check the exchange rate volatility hedging strategy.
    • • Identify efforts to expand new orders and partnerships.

    Almex has growth potential, but a cautious investment approach is necessary considering the current market conditions and internal challenges.

    Frequently Asked Questions

    What is Almex’s main business?

    Almex manufactures aluminum parts for electric vehicles. They produce body and platform parts based on Crash Alloy technology and have global automakers such as Volkswagen, Audi, and Porsche as clients.

    How was Almex’s performance in the first half of 2025?

    Almex recorded sales of KRW 48.4 billion and operating profit of KRW 2.7 billion. This represents a 12.8% and 35% increase year-over-year, respectively, but a continued net loss of KRW 0.4 billion.

    What are the key points to consider when investing in Almex?

    The ‘Chasm’ phenomenon in the EV market, low production capacity utilization, and exchange rate volatility are key points to consider when investing. The poor performance of the subsidiary should also be continuously monitored.