What Happened at KOSEM?
KOSEM’s H1 2025 report reveals declining sales and a shift to an operating loss. A significant decrease in sales of Normal SEM (CX series) is particularly noteworthy. Increased selling, general, and administrative expenses (SG&A), including salaries and R&D costs, are also major contributors to the loss.
Why These Results?
Declining sales suggest intensified competition and potential demand contraction in the Normal SEM market. Increased SG&A expenses, driven by higher salaries and R&D investment, further eroded profitability. Potential investment slowdown in related industries and foreign exchange fluctuations may have also played a role.
What’s Next for KOSEM?
While short-term challenges are anticipated, there are positive aspects. KOSEM maintains a solid position in the Tabletop SEM market, is actively developing next-generation electron microscope technologies, and is diversifying its overseas presence. However, whether these positive factors will translate into actual sales growth remains to be seen.
What Should Investors Do?
Currently, we maintain a ‘Hold’ recommendation for KOSEM and advise close monitoring of performance trends and new technology development outcomes. Management’s efforts to cut costs and improve profitability, and the successful market entry of next-generation SEM technology will be key factors determining the future stock price.
Frequently Asked Questions
What is KOSEM’s main business?
KOSEM develops and manufactures electron microscopes and ion millers, specializing in Tabletop SEMs.
How did KOSEM perform in H1 2025?
Sales decreased slightly compared to the same period last year, and the company reported an operating loss.
What is the outlook for KOSEM?
Short-term challenges are expected, but there are positive factors such as a competitive position in the Tabletop SEM market and efforts in new technology development. Close monitoring of performance improvement and new technology achievements is crucial.