1. Parseco Q2 2025 Earnings Analysis: A Closer Look at the Black Ink

Parseco reported revenue of KRW 47.5 billion, operating profit of KRW 1.7 billion, and net income of KRW 2.2 billion in Q2 2025, marking a return to profitability after a loss in Q1. While the continued growth of the OEM/ODM segment drove revenue growth, the low operating margin remains a key challenge.

2. H1 2025 Performance and Fundamentals: Balancing the Positives and Negatives

For the first half of 2025, Parseco reported revenue of KRW 81.8 billion (up 21.5% YoY) and an operating loss of KRW 0.57 billion. Despite revenue growth, profitability deteriorated. While OEM/ODM and overseas expansion are positive factors, the sluggish performance of the heating appliance segment, financial burdens, and weakened cash flow are causes for concern.

3. External Environment Analysis: Opportunities and Threats

The weak Korean Won is positive for exports but may lead to higher import costs. High interest rates add to financial burdens. Oil and freight rates remain stable, while rising gold prices reflect a preference for safe-haven assets.

4. Investment Strategy: Proceed with Caution

While the Q2 return to profitability is positive, investors should proceed with caution given the low operating margin and historical volatility. Key factors to watch include the continued growth of the OEM/ODM segment, the potential recovery of the heating appliance segment, cost reduction efforts, and strategies to mitigate the impact of fluctuating interest rates and exchange rates.

5. Key Observation Points

  • OEM/ODM segment growth trajectory
  • Heating appliance segment recovery potential
  • Profitability improvement strategies
  • Response to interest rate and exchange rate volatility