1. What Happened? : Jeolyeong Electric’s H1 2025 Earnings Analysis

Jeolyeong Electric recorded sales of KRW 60.3 billion and operating profit of KRW 20.4 billion in the first half of 2025. These figures represent a decrease of 57.7% and 65.1%, respectively, compared to the same period last year.

2. Why These Results? : Analysis of the Sluggish Performance

Intensified competition and tariff policies in the U.S. market are analyzed as the main causes. The domestic construction market downturn also had a negative impact.

  • Intensified U.S. Market Competition: Increased inventory and competition from local companies led to a decrease in large-scale orders.
  • Tariff Policies: U.S. tariff policies directly impacted performance starting from the second quarter.
  • Domestic Market Downturn: Sluggish construction market conditions and SOC budget cuts also created difficulties in the domestic market.

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

A difficult market environment is expected to continue in the short term, but positive factors exist in the mid-to-long term.

  • Positive Factors:
    • Stable financial structure
    • Efforts to develop eco-friendly/high-efficiency products
    • Secured order backlog
  • Negative Factors:
    • Possibility of continued intensified competition in the U.S. market
    • Raw material prices and high-interest rate environment

4. What Should Investors Do? : Action Plan

Investors should closely monitor the following:

  • Whether competition in the U.S. market eases and changes in tariff policies
  • Securing new orders and volatility in the order backlog
  • Trends in raw material prices and global interest rates

Despite the sluggish short-term performance, careful investment decisions should be made considering the potential for mid-to-long-term growth.