Korea Stock Market Insights

Tag: Seegene AI

  • Seegene AI: H1 2025 Earnings Shock Sends Warning Signals to Investors 🚨

    1. What Happened? : Seegene AI’s Earnings Shock

    Seegene AI’s H1 2025 revenue plummeted by 84.4% year-on-year, pushing the company into a severe crisis. The downturn is primarily attributed to the significant underperformance of its core AI facial recognition system business, which the growth in the AI facial authentication solution segment couldn’t offset. The company also reported operating and net losses, further weakening its financial standing.

    2. Why Did This Happen? : Core Business Struggles and Financial Risks

    • Core Business Decline: Increased competition and declining demand in the AI facial recognition system market led to a sharp drop in revenue.
    • High SG&A Expenses: Excessive selling, general, and administrative expenses negatively impacted profitability.
    • Financial Risks: Convertible bond issuance and derivative liabilities introduced instability to the company’s financial structure.
    • Customer Concentration: High reliance on a few key clients poses a risk to business stability.

    3. What’s Next? : An Uncertain Future, But Opportunities Remain

    The short-term outlook appears bleak. Recovery hinges on revitalizing the AI facial recognition system segment and accelerating the growth of the AI facial authentication solution business. In the long run, successful development and monetization of the medical AI business will be crucial. However, new ventures are inherently uncertain and require time.

    4. What Should Investors Do? : Proceed with Caution

    Seegene AI is navigating challenging waters. Investors should exercise extreme caution and closely monitor the company’s strategic execution and ability to adapt to market changes. The short-term investment appeal is very low, and future investment decisions should be contingent on the company’s progress and performance.

    How did Seegene AI perform in H1 2025?

    Seegene AI reported an 84.4% year-on-year decline in revenue in H1 2025, along with operating and net losses.

    What are Seegene AI’s core businesses?

    Seegene AI’s core businesses are AI facial recognition systems and AI facial authentication solutions. However, the AI facial recognition system segment is currently facing significant challenges.

    What is the outlook for Seegene AI?

    The short-term outlook is challenging, but the long-term success of the medical AI business will be a key factor. Investors should proceed with caution.

  • Seegene AI Stock Forecast: AIP Asset Management’s Massive Sale, What Should Investors Do?

    1. What Happened?

    AIP Asset Management sold 145,219 shares of Seegene AI, reducing its stake from 10.51% to 3.66%, a decrease of 6.85%. The purpose of the sale was ‘simple investment,’ and this sale raises the possibility of increased volatility in Seegene AI’s stock price.

    2. Why the Sell-off?

    The official reason for the sale is ‘simple investment,’ but the market is interpreting it in various ways, such as the possibility of Seegene AI’s poor performance and concerns about its future growth. As of December 2023, Seegene AI recorded a deficit in both operating profit and net income, and its total equity is also on a downward trend.

    3. So, What Will Happen to the Stock Price?

    • Short-term Impact: The massive sale could act as short-term downward pressure on the stock price. There is a high probability of increased stock price volatility along with increased trading volume.
    • Long-term Impact: While this sale itself does not directly affect the company’s fundamentals, the reduction in stake by a major investor could lead to a contraction in investor sentiment, which could negatively impact the long-term stock price trend. Future earnings improvement will determine the direction of the stock price.

    4. What Should Investors Do?

    Seegene AI investors should pay attention to short-term stock price fluctuations and closely monitor efforts to improve fundamentals, the possibility of additional sales, and overall market sentiment. It is important to pay attention to the company’s IR activities and future business performance, as well as whether profitability improves.

    What is the reason for AIP Asset Management’s sale of Seegene AI shares?

    The official reason for the sale is simple investment.

    What is the impact of this sale on Seegene AI’s stock price?

    In the short term, it could act as downward pressure on the stock price, and in the long term, it could lead to a contraction in investor sentiment.

    How should Seegene AI investors respond?

    Investors should pay attention to short-term stock price fluctuations, monitor efforts to improve fundamentals and the possibility of further sales, and pay attention to the company’s IR activities and future business performance.