1. Moatech Q2 2025 Earnings: What Happened?

Moatech reported revenue of KRW 10.5 billion, operating income of KRW -0.4 billion, and net income of KRW 0 billion (preliminary) for Q2 2025. Revenue increased by 40.47% year-over-year, and both operating and net income turned positive. Strong sales of ACTUATOR products in the automotive segment drove the improved performance.

2. Reasons for the Turnaround: Why the Improvement?

The growing demand for ACTUATOR products, driven by the increasing adoption of automotive electronics and eco-friendly vehicles, contributed significantly to Moatech’s revenue growth. The company’s efforts to diversify its business, such as developing IoT-connected products for the housing equipment sector, also played a positive role. Furthermore, consistent R&D investment (4.28% of sales) has helped Moatech maintain its technological competitiveness.

3. Investment Considerations: What are the Risks?

  • History of losses: The company’s past five years of consecutive operating losses raise concerns about the sustainability of its turnaround.
  • Customer concentration: High dependence on major customers (Company A and B) makes Moatech vulnerable to external changes.
  • Exchange rate fluctuations: Moatech’s exposure to foreign currency transactions exposes it to significant exchange rate risks.

4. Investment Strategy: What Should Investors Do?

While Moatech’s Q2 2025 earnings show positive momentum, investors should remain cautious due to the existing risk factors. We maintain a “Neutral – Positive Watch” outlook. Investors should closely monitor the company’s future performance, customer diversification efforts, and new business development, while carefully considering the potential risks.