1. What Happened? H1 2025 Earnings Breakdown

Remed’s H1 2025 earnings are marked by declining sales and worsening profitability. Consolidated revenue decreased by 8.2% year-over-year, and operating profit turned negative. The preliminary Q2 2025 results are particularly concerning, with revenue plummeting by 57.9%.

2. Why the Decline? Reasons for Underperformance

The primary reason for the decline is attributed to the sluggish overseas sales in the chronic pain treatment division. Increased SG&A expenses and R&D investments also contributed to the worsening profitability. The uncertain macroeconomic environment poses further risks.

3. What’s Next? Investment Strategy and Future Outlook

A cautious investment approach is recommended in the short term. However, considering Remed’s core technology and the growth potential of the healthcare market, there might be opportunities for bargain hunting in the mid-to-long term. Investors should closely monitor the company’s strategies for improving earnings and securing new growth engines.

4. Investor Action Plan

  • Short-term Investment: Cautious approach, maintain a wait-and-see attitude.
  • Mid-to-Long-term Investment: Look for bargain hunting opportunities, monitor earnings improvement and new growth engine development.
  • Risk Management: Be mindful of delayed earnings recovery, new product development failures, intensified competition, and increased exchange rate/interest rate volatility.