1. Sonid H1 2025 Earnings Analysis: What Happened?

Sonid reported revenue of KRW 8.5 billion (-26% vs. estimates), operating loss of KRW 2.7 billion (-69% vs. estimates), and net loss of KRW 2.5 billion (+22% vs. estimates). Both revenue and operating income fell significantly short of market projections.

2. Reasons for Underperformance: Why These Results?

Sonid’s underperformance is attributed to a combination of factors, including intensifying competition in the electronic materials/components market, increased costs from investments in new businesses, and a deteriorating macroeconomic environment. The worsening operating cash flow due to R&D and new business investments is particularly concerning.

3. Future Outlook and Investment Strategy: What Now?

While downward pressure on the stock price is expected in the short term, the mid-to-long-term growth potential of new businesses such as battery recycling, robotics, and defense should be considered. However, improving the financial structure and ensuring the effective execution of business strategies are crucial tasks. Investors should maintain a cautious approach and closely monitor improvements in earnings, changes in financial structure, and the performance of new businesses.

4. Investor Action Plan: What to Do Now?

  • Short-term investors: Be mindful of increased stock price volatility and focus on managing the risk of short-term price declines.
  • Mid-to-long-term investors: Consider the growth potential of new businesses, but continuously monitor improvements in financial structure and earnings recovery.
  • All investors: Keep an eye on changes in the macroeconomic environment and competitor trends. Thoroughly review the company’s IR materials and disclosures and consider consulting with financial professionals.