What Happened to SEWON E&C?

SEWON E&C announced its preliminary Q2 2025 earnings on August 14, 2025. With sales of KRW 14.6 billion (-37%), operating profit of KRW -2.1 billion (-134%), and net profit of KRW -14.2 billion (-282%), the company received a poor report card, falling far short of market expectations. In particular, net profit decreased sharply year-on-year, suggesting serious management difficulties.

What are the Causes of the Earnings Shock?

The main causes of this earnings shock are a sharp drop in sales and worsening profitability. Sales, which reached KRW 69 billion in Q3 2024, plummeted to KRW 14.6 billion in less than a year. This is analyzed as a result of the combined effect of sluggish performance in major business areas and uncertainty related to contracts. In addition, the worsening macroeconomic environment, such as rising raw material prices and interest rate hikes, acted as factors that further deteriorated profitability.

So What Happens? Impact on Investors

This earnings shock is highly likely to cause a sharp drop in SEWON E&C’s stock price. In a situation already at risk of delisting, this earnings deterioration is expected to further dampen investor sentiment and cause difficulties in raising funds. Doubts about its ability to continue as a going concern will also grow.

  • Sharp drop in stock price and dampened investor sentiment
  • Further deterioration of financial soundness
  • Uncertain future earnings outlook

Investor Action Plan

At this point, investments in SEWON E&C should be approached with extreme caution. Considering the possibility of delisting, deteriorating earnings, and uncertain business outlook, the investment risk is very high. Investors should carefully review the company’s specific business improvement plan and financial structure improvement plan, and monitor the progress of legal procedures related to delisting. Investing without further information 확인 could be very risky.