1. What Happened?: Kishin Precision’s Q2 2025 Earnings
Kishin Precision reported revenue of KRW 29.8 billion, an operating loss of KRW 1.3 billion, and a net loss of KRW 0.6 billion for Q2 2025. This represents a significant decline in revenue (18.5% YoY) and a shift to losses for both operating and net income compared to the same period last year.
2. Why Did This Happen?: Analyzing the Causes of the Decline
The primary drivers of this underperformance are the global economic slowdown and weakened demand in downstream industries, leading to an overall downturn in the mold base sector. The decline in Kishin Precision’s core mold base business was particularly pronounced. Rising raw material costs, increased SG&A expenses, and higher bad debt expenses also contributed to the deterioration in profitability.
3. What’s Next?: Outlook and Investment Strategies
The short-term outlook is negative. The uncertain landscape of the mold base industry and macroeconomic instability are expected to hinder Kishin Precision’s rapid recovery. However, the company holds long-term growth potential based on its core technologies and efforts to expand into overseas markets.
4. What Should Investors Do?: Action Plan
- Conservative Approach: Investors should proceed with caution, keeping in mind the potential for further share price declines.
- Monitor Key Metrics: Closely track key financial indicators, including revenue recovery, profitability improvement, and cost management.
- Identify Industry Recovery Point: Anticipate the recovery point of the mold base industry and develop corresponding investment strategies.
Q: What were Kishin Precision’s Q2 2025 earnings results?
A: The company reported revenue of KRW 29.8 billion, an operating loss of KRW 1.3 billion, and a net loss of KRW 0.6 billion, marking declines in revenue and a shift to losses compared to Q2 2024.
Q: What are the reasons for the poor performance?
A: A combination of factors contributed to the decline, including the global economic slowdown, weakened demand in related industries, rising raw material costs, increased SG&A expenses, and higher bad debt expenses.
Q: What is the outlook for Kishin Precision?
A: The short-term outlook is negative, but the company has long-term growth potential due to its core technologies and overseas expansion efforts. A conservative investment approach is recommended, emphasizing careful monitoring of key metrics and identifying the industry’s recovery point.
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