1. An Unexpected Profit: What Happened?

Mirae Bio Resources reported a surprise profit in Q2 2025, with revenue of 16.7 billion KRW, operating profit of 0.5 billion KRW, and net income of 0.1 billion KRW. This significantly exceeded conservative market forecasts. Notably, the company showed substantial improvement compared to the same period last year and even saw increased revenue and operating profit compared to Q1 2025.

2. Decoding the Turnaround: Key Growth Drivers

The company’s diversification strategy, marked by expansion into new markets like pet supplies, care foods, and beverages, appears to be paying off. Subsidiaries such as WeRoom (pet supplies), FoodTree (care foods), and HealthyVillage (beverages) are emerging as key growth drivers. Continued R&D investment in new materials like GABA and deodeok extracts also contribute to the positive outlook.

3. Investment Considerations: Potential Risks

However, there are potential risks to consider. Declining sales in the core feed business, financial health concerns of some subsidiaries, and vulnerability to raw material price and exchange rate fluctuations warrant attention. The decrease in net income on a standalone basis also requires further investigation.

4. Investment Strategy: Short-Term Opportunity vs. Long-Term View

While the short-term outlook seems positive for the stock price, a long-term investment approach requires caution. Careful consideration of the sustainability of earnings improvement and the mitigation of business risks is crucial. Investors should closely monitor the recovery of the feed business, performance improvement of subsidiaries, hedging strategies for exchange rate volatility, and the growth trajectory of new businesses.