1. What Happened? – Vect’s H1 2025 Performance Disappoints

Vect recorded consolidated revenue of KRW 27.5 billion, an operating loss of KRW 1.47 billion, and a net loss of KRW 1.98 billion in H1 2025. The declining sales and continued losses compared to the same period last year are attributed to increased market competition, rising costs, and high inventory levels.

2. Why These Results? – Analyzing Positive & Negative Factors

Positive Factors:

  • – Growth potential of the digital signage and edutech markets
  • – Pursuit of new AI and XR-based businesses
  • – Competitiveness in the procurement market
  • – Improvement in debt-to-equity ratio

Negative Factors:

  • – Continued decline in sales and profitability
  • – High inventory levels (KRW 13.9 billion, 31.3% of total assets)
  • – Burden of R&D expenses
  • – High financial costs
  • – Uncertainty surrounding new businesses
  • – Exchange rate and interest rate fluctuation risks
  • – Intensifying competition within the industry

3. What’s Next? – Vect’s Future Outlook

The short-term outlook remains negative. Addressing the declining performance and high inventory levels is crucial. However, in the medium to long term, the success of their AI-driven new businesses could potentially lead to a turnaround. Vect’s ability to adapt to changing market conditions and increased competition will be a key factor.

4. What Should Investors Do? – Investment Strategies

Short-term Investment: Caution is advised. Closely monitor improvements in inventory turnover and sales growth.
Medium to long-term Investment: Monitor the performance of new AI businesses, market response, and the impact of raw material prices and interest rate fluctuations.
Risk Management: Assess the company’s efforts to reduce inventory, improve debt repayment capacity, and enhance profitability.