1. Sambo Motors Q2 Earnings: A Mixed Bag

Sambo Motors reported consolidated revenue of KRW 430 billion in Q2 2025, maintaining its growth trajectory. However, operating profit and net income decreased to KRW 19.4 billion and KRW 4.3 billion, respectively, compared to the previous quarter. A positive aspect is the return to profitability compared to Q4 2024. However, a thorough analysis of the reasons for the profit decline and confirmation of future profitability improvements are necessary.

2. What Drove the Earnings Fluctuations?

The main driver of revenue growth was the strong performance of the plastic parts segment. Steady demand from major clients Hyundai/Kia Motors and expansion into overseas markets had a positive impact. On the other hand, the decline in operating profit and net income is estimated to be a result of a combination of factors, including rising raw material prices, increased exchange rate volatility, and one-off expenses.

3. Sambo Motors’ Future Growth Strategy

Sambo Motors has identified the EV parts business as its future growth engine. Through the acquisition of SB Automotive, it has strengthened its EV parts manufacturing capabilities and is expanding into overseas markets such as Mexico, the US, and India. It remains to be seen whether these efforts will translate into tangible results.

4. Key Checkpoints for Investors

Investors considering Sambo Motors should carefully review the following:

  • 1. Growth potential of the EV parts business: Evaluate the future growth potential through the effects of the SB Automotive acquisition and new order status.
  • 2. Financial soundness: Monitor the company’s efforts and actual results in improving its high debt ratio.
  • 3. R&D investment: Continued expansion of R&D investment and efficient resource allocation are crucial for securing technological competitiveness.