1. Innodep’s Q2 2025 Performance: What Happened?

Innodep reported KRW 19.6 billion in revenue, KRW 300 million in operating profit, and KRW 300 million in net profit for Q2 2025, marking a return to profitability. The more than doubling of revenue compared to Q1 and the shift from loss to profit are encouraging signs.

2. Reasons for the Turnaround and Future Outlook: Why and How?

This turnaround is attributed to initial successes in strengthening Intelligent Transportation Systems (ITS) technology through synergies with subsidiaries and diversifying into new businesses. The growth of the AI and smart city market is also having a positive impact. However, concerns remain about financial soundness, as total revenue for the first half decreased year-on-year, and the debt ratio increased.

3. Action Plan for Investors: How to Invest?

  • Short-term Investment: The return to profitability in Q2 could act as a short-term momentum for stock price increases.
  • Mid- to Long-term Investment: It is crucial to carefully observe the sustainability of earnings from Q3 onwards, the performance of new businesses, and the management of financial soundness before making investment decisions.

4. Key Investment Points

  • Sustainability of Q2 earnings
  • Revenue contribution and profitability of new businesses (ITS, EV charging, etc.)
  • Debt ratio management and improvement of financial structure
  • Maintaining technological competitiveness and order intake trends