1. What’s Happening with Yuseong Enterprise?

Yuseong Enterprise returned to net profit in the first half of 2025. Operating losses have decreased, and the debt-to-equity ratio has also significantly improved. However, sales slightly decreased, raising concerns about a slowdown in the overall automotive industry.

2. Reasons Behind the Return to Profitability and Its Significance

The return to profitability of subsidiaries Y&T Powertech and Coretech significantly contributed to Yuseong Enterprise’s improved performance. The improvement in financial soundness is also positive. However, the decline in sales raises questions about the company’s fundamental business competitiveness.

3. Why Caution Is Still Needed Despite Positive Signs

Yuseong Enterprise’s business structure is centered around internal combustion engine parts. Its electric vehicle parts business is still in its early stages, and aggressive investment and strategic changes are needed for it to become a future growth engine. Furthermore, external factors such as risks related to labor union lawsuits, global economic uncertainty, and raw material price volatility should be considered.

4. Investor Action Plan

Rather than focusing solely on short-term performance improvements, investors should make cautious investment decisions by comprehensively considering the growth potential of the electric vehicle parts business, resolution of litigation risks, and changes in the macroeconomic environment. Continuous monitoring of the company’s changes is crucial.