1. What’s Happening with Kukyoung G&M?
Disappointing Q2 Earnings and a Gloomy Market Outlook

Kukyoung G&M reported KRW 15.4 billion in revenue, KRW 100 million in operating profit, and KRW 200 million in net income for Q2 2025. While revenue slightly increased compared to the previous quarter, operating profit decreased, indicating continued weak profitability. The slowdown in the construction industry, increased competition, and high exchange rates impacting raw material costs are identified as key factors.

2. Why These Results?
Construction Industry Slowdown and Unfavorable Exchange Rates

The potential slowdown in the domestic construction market and intensifying international competition negatively impact Kukyoung G&M’s revenue and profitability. As a company heavily reliant on imported raw materials, the high exchange rates further burden costs and hinder profitability improvements.

3. What’s the Outlook?
Focus on Securing Future Growth Drivers

While downward pressure on stock prices is expected in the short term due to weak performance and macroeconomic factors, the long-term perspective requires attention to the company’s efforts in securing future growth drivers. Kukyoung G&M continues to invest in R&D for future architectural trends, such as zero-energy houses, BIPV, and smart windows, suggesting growth potential upon recovery of the construction market.

4. What Should Investors Do?
Monitor Key Indicators and Maintain a Long-Term Perspective

Investors should monitor upcoming quarterly earnings releases for signs of profitability improvement and track the company’s progress in new technology development and commercialization, as well as its response to fluctuations in exchange rates and raw material prices. The pace of recovery in the construction market and new order trends are also key factors to watch. Maintaining a long-term investment strategy rather than reacting to short-term volatility is crucial.