1. TCK Q2 Earnings: A Closer Look

TCK reported Q2 2025 revenue of ₩72.7 billion (a 7% YoY decrease), operating profit of ₩19.5 billion (down 17%), and net income of ₩16 billion (an 18% decrease). These figures significantly missed market projections, contrasting sharply with the company’s strong performance in Q1.

2. Unpacking the Underperformance: Key Factors

  • Slowing Growth in Solid SiC: The Solid SiC segment, a key driver of growth in Q1, experienced a slowdown, potentially due to increased competition or weakening demand.
  • Rising Raw Material Costs: A stronger Yen against the Korean Won, coupled with rising Graphite prices, likely squeezed TCK’s margins.
  • Global Economic Concerns: Growing anxieties about a global economic slowdown, fueled by rising interest rates and a potential recession, may have dampened demand in the semiconductor sector.

3. Looking Ahead: Stock Price and Fundamental Outlook

In the short term, TCK’s stock price is expected to face downward pressure. However, the company’s strong technological foundation and financial stability offer potential for long-term growth. Future stock performance will depend heavily on management’s strategic response and broader market conditions.

4. Investor Action Plan

  • Short-term Investors: Proceed with caution, considering the increased volatility and potential for further negative news. A risk-managed approach is crucial.
  • Long-term Investors: For those who believe in TCK’s long-term growth potential, the current dip may present a buying opportunity. Closely monitor management’s upcoming announcements and market developments.