1. Daelim Trading Q2 2025 Earnings: Understanding the Shock

Daelim Trading recorded KRW 30.5 billion in revenue for Q2 2025 (a 16.4% decrease year-over-year), exceeding market expectations of KRW 28.3 billion. However, both operating income (-KRW 2.6 billion) and net income (-KRW 4.3 billion) registered losses, falling far short of market projections.

2. Analyzing the Underperformance: Business Segment Breakdown

  • Building Materials: Revenue decline and operating loss due to rising raw material prices and exchange rate fluctuations.
  • Tableware: Increased losses and declining revenue, contributing to the company’s overall profitability decline.
  • Kitchenware: Continued decline in sales.
  • Plumbing Fixtures (D.B.M): Return to profitability and increased profits, with new product development expected to drive future growth.

3. Daelim Trading’s Future Outlook

Daelim Trading’s future stock performance is expected to fluctuate depending on factors such as profitability improvement efforts, business segment recovery, macroeconomic conditions, and market sentiment. Cost reduction, expansion of high-value-added product sales, and improvement in subsidiary performance will be key variables.

4. Action Plan for Investors

This earnings shock is likely to dampen investor sentiment in the short term. Investors should maintain a conservative approach and wait for the Q3 earnings announcement and profitability improvement plans before making investment decisions.