1. Sangsine Electronics H1 2025 Performance: What Happened?

Sangsine Electronics achieved sales of KRW 66.1 billion and operating profit of KRW 1.9 billion in H1 2025. Operating profit showed significant improvement, increasing by 65.5% year-over-year. Growth in the new reactor business drove top-line growth, and sales of high-margin products and efficient cost management also had a positive impact.

2. Drivers of Performance Improvement: Why the Growth?

  • Reactor Business Growth: Driven by the growth of the renewable energy and automotive components market, the reactor business entered a full-fledged growth trajectory.
  • Overseas Sales Expansion: The expansion of overseas sales demonstrates the company’s competitiveness in the global market.
  • Profitability Improvement Efforts: Profitability improved through increased sales of high-margin products and efficient cost management.

3. Hidden Risks: What to Watch Out For?

Despite the positive aspects, net profit decreased compared to the same period last year. Increased financial expenses and FX-related losses were the main causes. This highlights the company’s vulnerability to FX volatility, a key risk factor that could impact future performance. The dilution effect on Earnings Per Share (EPS) due to the rights offering also occurred.

4. Investment Strategy: What’s Next?

Sangsine Electronics possesses both the stability of its core business and the growth potential of its new business. However, the ability to manage risks from external factors like FX volatility will be a crucial variable in determining future stock price movements. Investors should carefully consider both positive factors and negative risks to make informed investment decisions.