1. IDIS Q2 2025 Earnings: Slowing Growth and Declining Profitability

IDIS reported revenue of ₩79.9 billion, operating profit of ₩4.9 billion, and net income of ₩3.4 billion in Q2 2025. While revenue saw a slight year-over-year increase, operating profit margin decreased to 6.13%, indicating a decline in profitability. This is attributed to increased investment in new businesses and intensified competition in the video surveillance market.

2. EV Charging Business: A New Growth Engine?

IDIS is venturing into new businesses, including EV chargers and electricity meters, to secure future growth drivers. The EV charging business, particularly its integration with AI-powered parking guidance systems, is expected to achieve return on investment by the first half of 2028, presenting long-term growth potential. However, establishing market presence and achieving profitability in these new ventures will take time, and initial investment costs may pressure short-term profitability.

3. Investment Strategy: Focus on New Business Performance and Macroeconomic Factors

Here’s an investment strategy for IDIS:

  • Monitor new business performance: Closely track market share, technological advancements, and return on investment timelines for the EV charging business.
  • Assess profitability improvement efforts: Pay attention to cost optimization strategies in existing businesses and profitability plans for new ventures.
  • Manage macroeconomic variables: Monitor the company’s strategies and effectiveness in responding to fluctuations in exchange rates and interest rates.
  • Identify valuation re-rating opportunities: Successful establishment and profitability improvements in new ventures may lead to valuation re-ratings.

4. Conclusion: Focus on Long-Term Growth Potential, Not Short-Term Volatility

IDIS is at a turning point. An investment strategy focused on the long-term growth story and the potential success of new businesses, rather than short-term earnings volatility, is recommended.