Korea Stock Market Insights

Tag: Terahertz

  • Actro (290740) CEO Increases Stake: A Sign of Growth Momentum?

    1. What Happened?

    On August 22, 2025, Actro’s CEO, Dong-gil Ha, acquired an additional 3,971 shares, increasing his stake from 38.33% to 38.37%. The purpose of the acquisition was stated as ‘influence on management rights’.

    2. Why Does It Matter?

    The CEO’s stake increase can be interpreted as a positive signal, indicating stronger commitment to responsible management and confidence in the company’s future. Actro has recently faced challenges with the smartphone market slowdown and declining profitability. In this context, the CEO’s share purchase can provide reassurance to shareholders. However, the marginal increase of 0.04%p may limit the short-term impact on stock price.

    3. Actro’s Current Situation

    3.1. Positive Factors

    • Growth of the actuator business due to the trend of high-performance smartphones
    • Growth potential of new businesses such as secondary battery materials and THz inspectors
    • Improvement in cash flow from operating activities

    3.2. Negative Factors

    • Declining profitability (increase in cost of sales and SG&A expenses)
    • High customer dependency (Samsung Electro-Mechanics 91.27%)
    • Slowdown in inventory and accounts receivable turnover
    • Foreign exchange volatility risk

    4. What Should Investors Do?

    While the CEO’s increased stake is a positive sign, continuous monitoring of Actro’s fundamentals is crucial. Pay close attention to improvements in profitability, customer diversification, and the performance of new businesses. A long-term investment perspective is recommended rather than a short-term one, and investors should also keep an eye on further stake purchases and changes in the macroeconomic environment.

    Frequently Asked Questions

    Q: What is Actro’s main business?

    A: Actro primarily manufactures camera actuators used in smartphones and tablet PCs.

    Q: What is Actro’s future growth outlook?

    A: The trend towards high-performance smartphones, including foldable phones and high-magnification zoom cameras, is expected to positively impact Actro’s actuator business. The growth potential of new businesses, such as secondary battery materials and THz inspectors, is also highly regarded. However, risk factors such as declining profitability and customer dependency should be considered.

    Q: Should I invest in Actro?

    A: While the CEO’s increased stake can be interpreted as a positive sign, careful investment decisions are necessary considering the uncertainties surrounding the company’s fundamentals. It is important to closely monitor future earnings improvements and the visibility of new business performance.

  • Actro (290740) H1 2025 Earnings Report Analysis: Profitability Achieved, but Risks Remain

    1. Actro’s H1 2025 Performance: Light and Shadow

    Actro recorded KRW 111.3 billion in revenue and KRW 1.84 billion in operating profit for the first half of 2025. While operating profit turned positive, the company reported a net loss of KRW 0.35 billion. Cost-cutting efforts led to operating profit despite the continued sluggish performance of the Actuator division, Actro’s core business, due to the smartphone market slowdown and intensifying competition.

    2. Uncertain Business Environment and Actro’s Competitiveness

    The slowing growth of the smartphone market poses a significant threat to Actro. However, new businesses, such as silicon graphene coating equipment for secondary battery anodes and terahertz wave inspection equipment development, offer positive potential. The success of these ventures remains uncertain, requiring significant investment and time for commercialization.

    3. Action Plan for Investors

    In the short term, close monitoring of exchange rate volatility, cost efficiency, and the performance of new businesses is crucial. In the medium to long term, investors should pay attention to commercialization plans and investment outcomes for the secondary battery and terahertz businesses, as well as strategies to maintain and strengthen competitiveness in the smartphone market. Re-evaluating investment decisions after reviewing business diversification and new business performance through future earnings announcements is recommended.

    Q: How did Actro perform in the first half of 2025?

    A: Actro recorded KRW 111.3 billion in revenue, KRW 1.84 billion in operating profit, and a net loss of KRW 0.35 billion. While operating profit turned positive, the company experienced a net loss.

    Q: What is Actro’s main business?

    A: Actro’s core business is manufacturing Actuators, components for smartphone cameras. However, they are facing difficulties due to market slowdown and increased competition.

    Q: What are Actro’s new business ventures?

    A: Actro is developing silicon graphene coating equipment for secondary battery anodes and terahertz wave inspection equipment. While not yet commercialized, these ventures hold high growth potential.