Korea Stock Market Insights

Tag: UTG

  • Dowooinsys (484120) H1 2025 Earnings Analysis: Profitability Decline Despite Foldable Market Growth

    1. Dowooinsys H1 2025 Earnings: What Happened?

    Dowooinsys recorded KRW 53.1 billion in revenue, KRW 3.6 billion in operating profit, and a net loss of KRW 5.8 billion in H1 2025. Revenue increased slightly year-over-year, but the company swung to a net loss.

    2. Why These Results? Analyzing the Drivers of Change

    Positive Factors: Growing demand for UTG, driven by the expanding foldable market, led to increased revenue for Dowooinsys. The company’s technological competitiveness and efforts to secure future growth engines are also viewed positively.

    • Continued growth in the foldable market
    • Success in mass-producing UTG and being the only domestic company to perform the entire UTG process
    • Completion of large-area UTG development and preparation for entry into the IT device market

    Negative Factors: Foreign exchange losses and increased financial expenses led to a net loss. High debt reliance and ongoing litigation also pose risks.

    • Profitability decline due to foreign exchange losses and increased financial costs
    • Increase in accounts receivable and high debt reliance
    • Litigation risk

    3. Investment Strategy: What’s Next?

    Dowooinsys has medium- to long-term growth potential, aligned with the growth of the foldable market. However, the short-term decline in profitability is a concern for investors. Investors should consider the following points when making investment decisions:

    • Profitability recovery
    • Performance of large-area UTG business
    • Outcome of litigation and changes in the macroeconomic environment

    Frequently Asked Questions

    What is Dowooinsys’s main business?

    Dowooinsys develops and manufactures UTG (Ultra Thin Glass) used in foldable displays.

    What is the most important point from the H1 2025 earnings?

    While revenue grew, the company experienced a net loss due to increased non-operating expenses.

    What is the outlook for Dowooinsys?

    Dowooinsys is expected to benefit from the growth of the foldable market, but profitability improvement is a key factor.

  • New Power Plasma Q2 Earnings Disappoint: What’s Next?

    1. What Happened? Q2 Earnings Breakdown

    New Power Plasma reported Q2 2025 revenue of ₩163.3 billion, missing the estimated ₩170.8 billion by 4%. Operating profit came in at ₩12.2 billion, a significant 25% drop from the projected ₩16.3 billion. Despite strong performance in their Cleaning System segment, overall profitability declined, impacted by the underperformance of subsidiary Doowincis.

    2. Why the Disappointment? Analyzing the Underperformance

    The decline in profitability is primarily attributed to rising cost of goods sold and increased selling, general, and administrative expenses. External factors, including rising raw material prices and currency fluctuations, combined with the delayed profitability improvement at Doowincis, contributed to the negative results. Market volatility in the semiconductor and display industries, along with dependence on key customers, also pose significant risks.

    3. What’s Next? Outlook and Investment Strategy

    While short-term downward pressure on the stock price is anticipated, the long-term growth potential remains. The growth trajectory of the defense subsidiary, Spacepro, and the expansion of new businesses, including UTG, are positive factors. However, the key variables to watch are profitability improvement and securing financial soundness.

    4. What Should Investors Do? Action Plan

    The current investment recommendation is to ‘Hold’. Investors should closely monitor the earnings trends over the next 2-3 quarters, focusing on profitability improvement, Doowincis’s competitiveness in the UTG business, and the continued growth of Spacepro, adjusting their investment strategies accordingly.

    Q: Why did New Power Plasma’s Q2 earnings disappoint?

    A: Rising cost of goods sold, increased SG&A expenses, and the underperformance of subsidiary Doowincis are key factors.

    Q: Should I invest in New Power Plasma?

    A: The current recommendation is to ‘Hold’ and closely monitor upcoming earnings and profitability improvements.

    Q: What is the outlook for New Power Plasma?

    A: While short-term pressure on the stock is expected, long-term growth potential remains, driven by the defense segment and new business expansion.