1. What Happened? : Q2 Earnings Surprise

SNCchem reported revenue of KRW 30.6 billion, operating profit of KRW 4.2 billion, and net income of KRW 3.4 billion for Q2 2025, significantly surpassing market expectations (KRW 0 billion), achieving an “earnings surprise.”

2. Why This Result? : Strong Fundamentals and Market Conditions

This strong performance is attributed to solid business results, driven by PR materials, and a successful strategy of expanding its high-end product portfolio, including EUV PR materials and HBM Bump Polymers. The recovery of the semiconductor market, fueled by growth in AI, 5G, and autonomous driving, also contributed positively. The company’s robust fundamentals, evidenced by Q1 2025 cumulative revenue of KRW 61.277 billion (up 12.8% YoY) and operating profit of KRW 8.77 billion (up 66.0% YoY), also underpinned the strong Q2 performance.

3. What’s Next? : Positive Outlook, but Risk Management is Key

SNCchem is expected to continue its steady stock price growth based on its current positive momentum and future growth potential. However, it’s crucial to develop investment strategies that consider the volatility of the semiconductor industry and exchange rate fluctuations. Investors should be mindful of the potential pressure from rising market expectations and increasing competition.

4. What Should Investors Do? : Short-Term/Long-Term Investment Strategies

Short-Term Strategy: Watch for positive stock market reactions to the earnings announcement and monitor upward trends.
Long-Term Strategy:

  • Closely monitor the market entry and sales expansion of new materials such as EUV PR and HBM.
  • Keep an eye on the strengthening of partnerships with major clients and new order wins.
  • Continuously monitor exchange rates, interest rates, and overall semiconductor market trends to manage investment risks.
  • Consistently review debt ratios and cash flow improvement trends.