1. Senko’s Strong H1 2025 Performance: Revenue and Profit Growth

Senko reported consolidated revenue of KRW 15.878 billion (a 3.47% YoY increase) and operating profit of KRW 839 million (a 55.33% YoY increase) for the first half of 2025. Strong sales of portable and fixed gas detectors, coupled with successful government-led environmental projects, drove revenue growth. Efficient cost management contributed significantly to improved operating profit margins.

2. Senko’s Growth Drivers: Unique Technology and Market Expansion

Senko holds the unique distinction of possessing Korea’s sole electrochemical gas sensor technology. The company actively participates in government-led projects, including smart city and integrated control center development. Furthermore, Senko focuses on global market expansion, with a growing presence in China and the US, and strategic targeting of portable gas detector markets in the Middle East and China. A high R&D investment ratio relative to revenue positions Senko favorably for future growth through next-generation sensor and AI-based system development.

3. Investment Considerations: Financial Risks and Governance Changes

Despite Senko’s positive growth trajectory, investors should be mindful of certain risks. Convertible redeemable preferred stock liabilities (KRW 5.374 billion) and net losses from subsidiaries (U&I Co., Ltd. and SENKO TECHNOLOGIES USA CORP.) raise concerns about financial stability. A recent agreement for a change in majority shareholder and a capital increase could significantly impact governance and financial structure, warranting close monitoring of subsequent disclosures.

4. Investor Action Plan: Ongoing Monitoring and Prudent Approach

While Senko presents a compelling growth story, potential investors must consider financial risks and the possibility of governance changes. A prudent approach involves ongoing monitoring of key factors such as sustained earnings improvement in the second half of the year, debt management, subsidiary profitability, management stability following the change in majority shareholder, and progress in new business and technology development.