Korea Stock Market Insights

Tag: Sec

  • Sec Co., Ltd. (081180) 2025 Earnings Forecast: Growth Potential vs. Profitability Concerns

    1. Sec Announces 2025 Earnings Forecast: What Happened?

    Sec projected sales of KRW 65.3 billion and operating profit of KRW 400 million for 2025. However, the first half saw disappointing results with sales of KRW 20.7 billion and an operating loss of KRW 4.1 billion. The lack of net income guidance further fuels investor anxieties.

    2. Analyzing the Causes of Underperformance: Why These Results?

    Sec’s underperformance in the first half was marked by declining sales and a shift to losses compared to the same period last year. The main causes are believed to be a combination of external factors, such as the global economic slowdown and the semiconductor industry downturn, and internal factors, like the continued losses of its subsidiaries.

    3. Sec’s Future: Growth Potential and Risks

    • Growth Potential: Sec’s high reliance on future growth industries such as HBM, EV batteries, and defense is positive. Its 3D CT X-ray system technology also underpins its competitiveness.
    • Risks: Deteriorating profitability, high debt ratio, and uncertainties surrounding its subsidiaries are key risk factors to consider when investing.

    4. Action Plan for Investors: What to Do?

    • Existing Investors: Closely monitor second-half earnings performance and plans for profitability improvement. Consider reducing holdings during short-term rallies.
    • New Investors: It is advisable to remain cautious until the second-half 2025 earnings announcement. Making investment decisions after confirming improvements in operating profit margin and a return to net profit is recommended.
    Q: What is Sec’s main business?

    A: Sec is a company that mainly produces X-ray inspection equipment for the semiconductor and battery industries. In particular, based on its 3D CT X-ray system technology, it shows high dependency on future growth industries such as HBM, EV batteries, and defense.

    Q: What is Sec’s 2025 earnings forecast?

    A: Sec forecasts KRW 65.3 billion in sales and KRW 400 million in operating profit for 2025. However, uncertainties remain high due to poor first-half results and undisclosed net income forecasts.

    Q: What should investors be aware of when investing in Sec?

    A: Deteriorating profitability, high debt-to-equity ratio, and uncertainties surrounding its subsidiaries are key risk factors to consider when investing. It’s crucial to closely monitor the second-half earnings and plans for profitability improvement.

  • Sec Co., Ltd. (081180) Stock Forecast: H1 2025 Earnings Analysis & Investment Strategy

    1. What Happened at Sec Co., Ltd. (081180)?

    Sec experienced slight revenue growth in the first half of 2025, but aggressive investments and increased R&D expenses led to an operating and net loss. In particular, the sharp decline in sales of X-ray systems for the battery segment is increasing short-term uncertainty. While the IPO strengthened capital, accumulated losses and large-scale investment burdens remain financial risk factors.

    2. Why These Results?

    • X-ray System (Semiconductor): Sales declined due to shrinking customer investments and a slowdown in the semiconductor industry. However, the growth of the AI semiconductor and HBM markets maintains mid-to-long-term growth potential.
    • X-ray System (Battery): Sales plummeted due to delays in customer plant expansion and a slowdown in the electric vehicle market. Long-term growth potential remains, but recovery of investment is key.
    • LINAC: Sales surged thanks to increased orders in the defense and industrial sectors. Sec secured new growth engines alongside the growth of the K-defense market.
    • Tabletop SEM: Sales decreased due to seasonal factors and an economic slowdown in the R&D and analytical equipment market.

    3. What’s Next for Sec?

    The preliminary Q2 2025 results showed positive signs, with sales and operating profit exceeding market expectations. However, net profit fell short of expectations, presenting a challenge. The growth of the HBM and AI markets is expected to provide mid-to-long-term growth opportunities for the X-ray system business. For the battery segment, the timing of recovery and securing technological competitiveness are crucial, while the LINAC business is expected to continue its growth trajectory, driven by the expansion of the defense market.

    4. What Should Investors Do?

    In the short term, it’s crucial to understand whether the improvement trend in Q2 earnings will continue, particularly focusing on factors improving net profit. Investors should also pay attention to new order trends in the semiconductor and battery segments. In the long term, it’s essential to monitor the growth potential and market share expansion possibilities of the HBM/AI semiconductor, battery, and LINAC businesses. Furthermore, attention should be paid to improvement in financial soundness, recovery of deficit through profitability improvement after facility investment, and debt ratio management capabilities.

    Frequently Asked Questions

    What are Sec’s main businesses?

    Sec develops and manufactures X-ray inspection systems, LINAC (linear accelerators), Tabletop SEM (tabletop scanning electron microscopes), and more. Their main business areas include semiconductors, batteries, defense, and medical.

    How was Sec’s performance in the first half of 2025?

    While sales grew slightly, the company recorded operating and net losses. Aggressive investments and increased R&D expenses are analyzed as the main causes.

    What is Sec’s investment strategy?

    In the short term, it is important to understand whether the improvement trend in Q2 earnings will continue, and the factors improving net profit. In the long term, focus on the growth potential of the HBM/AI semiconductor, battery, and LINAC businesses, and the improvement in financial soundness.

  • Sec Co., Ltd. (081180) IR Analysis: Q2 Earnings Rebound Potential and Investment Strategy

    1. What will be discussed at Sec’s IR?

    Sec is scheduled to announce its Q2 2025 business performance and future business strategies at its IR on August 18, 2025. The market is focusing on whether the increase in SG&A expenses, which was the cause of the operating loss in Q1, has been resolved and on the plan to convert the order backlog into sales. Sec’s business strategy for growth industries such as HBM, electric vehicle batteries, and K-defense, as well as its IPO funding utilization plan, are also key interests.

    2. Why is Sec important?

    Sec develops and manufactures various industrial inspection equipment such as X-ray inspection systems, LINAC systems, and Tabletop SEMs. In particular, it has a high exposure to future growth industries such as semiconductors, batteries, and defense, attracting the attention of investors. However, as the stock price has been declining due to sluggish Q1 earnings, it is important to present improved performance and growth momentum through this IR.

    3. Key Analysis of Sec’s IR

    • Positive factors: Expectations for improved Q2 earnings, exposure to growth industries, post-IPO effects, reaffirmation of technological competitiveness
    • Negative factors: Possibility of continued sluggish Q1 performance, falling short of market expectations, macroeconomic variables (exchange rates, interest rates, inflation), possibility of continued stock price decline

    4. Action Plan for Investors

    Investors should focus on the following points in this IR.

    • Whether Q2 earnings improved and specific figures
    • Plan and feasibility of converting order backlog to sales
    • Measures to manage SG&A expenses such as R&D expenses and stock compensation expenses
    • Specific business strategies for growth industries such as HBM, electric vehicle batteries, and K-defense
    • IPO funding utilization plan and performance
    • Strategies to respond to macroeconomic risks such as exchange rate fluctuations

    Investment strategies should be revised based on the results of the IR, and it is important to evaluate Sec’s growth potential from a long-term perspective.

    Frequently Asked Questions

    What are Sec’s main businesses?

    Sec develops and manufactures various industrial inspection equipment, including X-ray inspection systems, LINAC systems, and Tabletop SEMs.

    What should I pay attention to in this IR?

    Key points include whether the company overcame the sluggish Q1 performance, plans for converting the order backlog to sales, and business strategies for growth industries.

    What should I be aware of when investing in Sec?

    Consider risks such as macroeconomic variables and intensifying market competition.

  • Sec (081180) Holds IR: Targeting Turnaround with HBM and Battery Growth Momentum!

    Sec IR: What was discussed?

    Sec delivered key messages at its IR session on September 10, 2025, aiming to enhance investor understanding of its electron beam and X-ray technologies and boost its corporate value. Here are the main points:

    • 1. Introduction to electron beam and X-ray technologies
    • 2. Overview of the company and its business (semiconductors, batteries, defense, etc.)
    • 3. Future investment plans

    Sec’s Growth Drivers: Why should you pay attention?

    Sec specializes in X-ray inspection systems, playing a crucial role in future growth industries such as HBM, advanced packaging, electric vehicle batteries, ESS, and K-defense. The trend towards 3D CT X-ray systems and the increasing demand for reliable battery inspection further highlight Sec’s technological competitiveness. The company’s focus on enhancing competitiveness through AI/Deep-learning technology is also noteworthy.

    Investment Points and Risks: What should investors do?

    Despite a weak Q1 performance, Sec boasts a solid order backlog of 58.524 billion won. The company plans to improve profitability by utilizing funds secured through its IPO for facility investment and production capacity expansion. However, the global economic slowdown and exchange rate volatility represent potential risk factors.

    Action Plan for Investors

    Investors considering Sec should carefully review the IR materials and upcoming earnings announcements while continuously monitoring macroeconomic and industry trends. It will be particularly helpful to assess the specific results of Sec’s core technological competitiveness, growth strategies, and plans for profitability improvement.

    Frequently Asked Questions

    What are Sec’s main businesses?

    Sec’s main businesses include X-ray systems for the semiconductor and battery industries, LINAC systems, and Tabletop SEM.

    How was Sec’s Q1 2025 performance?

    Sec recorded sales of 7.577 billion won in Q1 2025 (down 23.89% year-on-year) and an operating loss of 2.27 billion won. However, with a solid order backlog of 58.524 billion won, sales recovery is expected.

    What is the outlook for Sec?

    A positive outlook is expected based on growing demand in HBM, EV batteries, and other growth industries, combined with Sec’s technological competitiveness. However, the global economic slowdown and exchange rate volatility are potential risks.