1. What Happened?

STI’s Q2 2025 earnings report revealed revenue of ₩87.1 billion, operating profit of ₩5.3 billion, and net income of ₩2.4 billion. These figures fell short of market consensus by 20%, 58%, and 73%, respectively, leading to an ‘earnings shock’.

2. Why Did This Happen?

While the preliminary earnings release didn’t disclose specific reasons, industry analysts speculate a combination of factors, including delays in client investments, increased competition, and rising costs. This contrasts with the company’s overall H1 2025 performance, which saw a 25.4% YoY increase in revenue and a 61.3% YoY increase in operating profit.

3. What’s Next?

Short-term downward pressure on the stock price is likely. However, the long-term outlook may be more positive, considering the growth trajectory of the semiconductor market and STI’s technological competitiveness. Future earnings recovery and new order wins will be crucial for the stock’s performance.

4. What Should Investors Do?

  • Short-term investors should remain cautious and observe market trends.
  • Long-term investors should analyze whether the Q2 underperformance is a temporary setback or a structural issue and assess the potential for future earnings recovery.
  • Continuous monitoring of STI’s order backlog, new order wins, and client diversification strategy is essential.