1. What Happened? H1 2025 Earnings Analysis

Samwha Capacitor’s H1 2025 revenue slightly increased year-on-year, but operating profit and net profit decreased significantly. The preliminary Q2 2025 earnings, in particular, fell far short of expectations, raising investor concerns.

2. Why These Results? Causes of the Weak Performance

A combination of external factors, such as rising raw material prices, exchange rate fluctuations, and increased financial expenses, along with internal factors like intensifying competition and declining profitability, contributed to the weak performance. The decline in net profit revealed in the preliminary earnings suggests the possibility of non-operating losses.

3. What’s Next? Future Outlook and Investment Strategy

Growth in new markets like automotive, 5G, and IoT, as well as continuous R&D investment, are positive factors. However, slowing profitability, high debt ratio, and global economic and exchange rate volatility remain risk factors. The investment opinion is ‘Neutral’. In the short term, investors should pay attention to raw material prices and exchange rate trends, cost management efficiency, and H2 2025 earnings improvement. In the medium to long term, strengthening competitiveness through high-value-added product development, production efficiency enhancement, and financial structure improvement is crucial for sustainable growth.

4. Investor Action Plan

Investors should consistently monitor the company’s fundamental improvements without overreacting to short-term stock price fluctuations. It is advisable to re-evaluate the investment strategy based on the upcoming Q3 2025 earnings and annual guidance.