1. What Happened? H1 2025 Earnings Overview
SKIET Technology experienced a challenging first half of 2025, marked by a significant decline in sales and continued operating losses. Q2 revenue reached ₩82.7 billion, a substantial drop compared to the same period last year. The operating loss stood at ₩-53.7 billion, while the net loss was ₩-19 billion, better than market expectations, but still in the red.
2. Why These Results? Analyzing the Underlying Causes
The main drivers behind this underperformance are the decline in sales of key raw materials like PE and coating materials, coupled with high R&D and SG&A expenses. Furthermore, the financial burden from large-scale facility investments and foreign exchange volatility contributed to the deteriorating profitability.
3. What’s Next? Outlook and Opportunities
Despite the short-term challenges, there is potential for long-term growth. The expanding EV battery market and the strengthening IRA regulations could present opportunities for SKIET. Leveraging its technological competitiveness, including the world’s first sequential stretching process, 5㎛ thin-film product development, and commercialization of double-sided simultaneous coating, SKIET can aim to increase its market share. Additionally, the company’s pursuit of new businesses, such as the development of high-performance CO2 separation membrane materials for CCUS, is a positive factor.
4. What Should Investors Do? Action Plan
The investment recommendation is ‘Neutral’. While short-term momentum for a stock rebound is limited, investment decisions should consider the potential for long-term growth. Careful monitoring of the company’s strategies for improving profitability, securing financial soundness, and managing foreign exchange risk is crucial.
Frequently Asked Questions
How did SKIET Technology perform in the first half of 2025?
SKIET Technology experienced declining sales and continued operating losses in H1 2025. Q2 revenue was ₩82.7B, operating loss was ₩-53.7B, and net loss was ₩-19B.
What are the reasons for the poor performance?
The decline in sales of key raw materials, high R&D and SG&A expenses, financial burden from large-scale investments, and foreign exchange volatility are the main factors.
What is the future outlook for SKIET Technology?
Despite short-term challenges, long-term growth potential remains, driven by the expanding EV battery market, IRA regulations, and the company’s technological competitiveness.
What should investors consider?
Investors should carefully monitor SKIET’s strategies for improving profitability, securing financial soundness, and managing foreign exchange risk, and consider investment from a long-term perspective.