1. Q1 2025 Performance: Below Expectations

WONIK QnC reported revenue of KRW 232.9 billion, slightly missing the market consensus of KRW 238 billion. Operating profit and net income came in significantly below expectations at KRW 14.1 billion and a loss of KRW 2.3 billion, respectively.

2. Analyzing the Underperformance

While revenue saw a slight year-over-year increase, the decline in operating profit and net income was primarily driven by increased SG&A expenses, rising raw material costs, and unfavorable foreign exchange fluctuations. These external factors impacted profitability more severely than anticipated.

  • Quartz Segment Recovery: The recovery in the quartz segment offers a glimmer of hope.
  • MT Holding’s Steady Contribution: The consistent performance of subsidiary MT Holding is also a positive sign.

3. Future Outlook and Investment Strategy

Despite short-term concerns about potential stock price pressure and delayed profitability improvement, WONIK QnC maintains long-term growth potential. Investors should pay close attention to the following:

  • The company’s cost control measures
  • Efforts to improve profitability (e.g., development of high-value-added products, new business ventures)
  • Strategies to manage foreign exchange and interest rate volatility risks

4. Investor Action Plan

Rather than reacting to short-term volatility, investors should carefully assess WONIK QnC’s long-term growth prospects and risk management capabilities. Continuous monitoring of future earnings announcements and management commentary will be crucial for informed investment decisions.