1. Homecast H1 2025 Performance: Below Expectations

Homecast reported sales of KRW 7 billion (-18% YoY), operating loss of KRW 1.4 billion (+53% YoY), and net loss of KRW 5 billion (-108% YoY) for Q2 2025. These figures fell significantly short of market expectations, primarily due to declining sales in electronic component distribution and discontinued operations of subsidiaries.

2. Business Restructuring: Seeking New Growth Engines

Homecast is divesting its set-top box business and its cosmetics subsidiary, focusing on electronic component distribution while venturing into medical device/pharmaceutical sales. The expansion of the Korean medical device market due to sanctions against Russia presents a significant opportunity. However, the divestiture and associated uncertainties pose short-term financial challenges.

3. Key Investment Analysis: Opportunities and Risks

Opportunities:

  • • Growth potential of medical device/pharmaceutical business
  • • Structural growth potential of the electronic components distribution market
  • • Increased competitiveness of Korean products

Risks:

  • • Potential for continued poor performance
  • • Uncertainty surrounding subsidiary divestiture
  • • Initial costs and increased competition in new ventures
  • • Profitability fluctuations due to exchange rate volatility

4. Investment Strategy: A Conservative Approach

Homecast is at a critical juncture. While the new ventures hold promise, short-term financial uncertainties remain. Investors should adopt a ‘hold’ or ‘wait-and-see’ approach, carefully monitoring performance improvements, the status of the divestiture, and the progress of new businesses.