1. Waldex Q2 2025 Earnings: Key Highlights
Waldex reported consolidated revenue of KRW 66.6 billion, operating profit of KRW 8.3 billion, and a net loss of KRW 14 billion for the first half of 2025. Revenue plunged 52.7% year-over-year, and the company swung to a net loss.
2. Reasons for the Decline: WCQ Lawsuit and Market Downturn
The primary driver of this earnings shock was the KRW 20.587 billion provision recognized due to the lost lawsuit by its subsidiary, West Coast Quartz Corporation (WCQ). The semiconductor industry downturn and inventory adjustments by some clients also contributed to the sales decline.
3. Investor Action Plan: Sell Rating
The current situation at Waldex is dire. The likelihood of a short-term turnaround appears low. Therefore, investors should strongly consider selling their shares or significantly reducing their holdings.
- Short-term perspective: With the high probability of a sharp drop in stock price, selling to minimize losses is crucial.
- Long-term perspective: Closely monitor the company’s restructuring plans, the outcome of the WCQ lawsuit, and the recovery of its core business.
4. Future Outlook: Uncertainty with a Glimmer of Hope
The growth of the semiconductor market could present an opportunity for Waldex. However, the uncertainty surrounding WCQ and the persistent poor performance make a quick recovery challenging. Investors should closely watch the company’s restructuring efforts, new business performance, and the overall market environment.
Q: What were Waldex’s Q2 2025 earnings results?
A: Revenue was KRW 66.6 billion, operating profit was KRW 8.3 billion, and the company reported a net loss of KRW 14 billion. This represents a 52.7% year-over-year decline in revenue and a swing to a net loss.
Q: What are the main reasons for Waldex’s poor performance?
A: The primary factors include provisions related to the WCQ lawsuit loss, the semiconductor market downturn, and client inventory adjustments.
Q: Should I invest in Waldex?
A: The current investment recommendation is to sell. There is a high probability of a short-term price decline and the long-term outlook remains uncertain.