Securities firms project that Actro (290740), after weak Q2 results, could enter a phase of earnings normalization from the third quarter. The possibility that revenue from new businesses, driven by business diversification, will become visible in the second half of the year has also been raised.

▲ Q2 Weakness Attributed to 'Revenue Carryover'... Q3 Normalization Expected

Eugene Investment & Securities analyzed that Actro's Q2 revenue this year declined year-on-year, and its operating profit also fell short of the firm's own estimates. However, the brokerage assessed that Q2 weakness partly reflected the effect of some revenue being carried over to the following quarter. Accordingly, it explained that with the carried-over volume reflected, results could normalize in Q3.

▲ Mass Production of New Businesses to Begin in Q3... Full-Scale Supply Expected in Q4

The performance of new businesses was cited as the biggest variable for the second half. Eugene Investment & Securities forecast that as Actro pursues business diversification, it will enter mass production of new businesses from Q3, with full-scale supply beginning in Q4. It analyzed that if the recovery of existing businesses and revenue generation from new businesses proceed simultaneously, the earnings trend in the second half could also change. In particular, the timing at which new businesses translate into actual revenue and the scale of supply are expected to be key factors determining the extent of future earnings improvement.

▲ Growing Valuation Appeal... "Possibility of Upward Turn in Share Price"

Positive assessments were also made on the valuation front. Following the recent share price correction, valuation appeal has increased, and the brokerage judges that if earnings normalization and expanding revenue from new businesses are confirmed going forward, the stock could shift into an upward trend. However, the mass production and supply schedules for new businesses may vary depending on customer demand and production timelines, so it is necessary to verify whether actual revenue is reflected.

Ultimately, the degree of earnings recovery in existing businesses in Q3 and whether supply of new businesses expands in Q4 are expected to be key indicators for gauging Actro's second-half performance.

[Stock prices can exhibit heightened volatility depending on corporate performance, industry conditions, merger terms, market supply and demand, and other factors. Securities firms' analyses and forecasts may differ from actual future results and do not guarantee returns on any specific stock. Before making investment decisions, investors should comprehensively review the company's official disclosures, financial condition, and business progress. This article is not intended to solicit the purchase or sale of any specific stock. This article was written with AI assistance.]