1. StormTech Interim Dividend: Key Information

StormTech announced an interim dividend on July 28, 2025, paying KRW 100 per share on August 25. The dividend yield is 2.57% based on the current share price of KRW 3,870.

2. Positive Factors: Improved Profitability and Rising Stock Price

Despite a decrease in sales, StormTech saw an increase in operating profit and net income in Q1 2025. Cost reduction efforts and a high-value-added product strategy appear to be effective. The stock price has also been on an upward trend in 2025.

3. Potential Risks: Exchange Rates, Interest Rates, and New Business Uncertainty

  • Exchange Rate and Raw Material Price Fluctuations: Highly dependent on overseas markets, StormTech is vulnerable to exchange rate fluctuations. Volatility in the KRW/USD exchange rate and oil prices could negatively impact profitability.
  • Interest Rate Changes: Rising interest rates could increase StormTech’s borrowing costs, leading to lower profitability.
  • New Business and Subsidiary Merger: The expansion of the printed circuit board business and the merger with a subsidiary carry uncertainties, and their success will significantly impact long-term growth.

4. Investment Strategy: Short-Term Gains vs. Long-Term Risks

While the interim dividend may be attractive in the short term, potential risks should be considered. Before making an investment decision, further financial analysis and market research, particularly in-depth analysis of overseas markets and new businesses, are essential. It’s crucial to predict stock price fluctuations considering the ex-dividend effect and market sentiment, and to establish a risk management strategy.