Moda-InnoChips: 2025 consolidated revenue down 7.9%, operating profit down 27.8%, net loss of 6.2B KRW, swing to loss; merger with Rojen to change control

2025 consolidated revenue 358.1B KRW (down 7.9% YoY), operating profit 27.9B KRW (down 27.8%), net loss of 6.2B KRW, swinging from profit to loss
Both electronics and retail segments underperformed: electronics operating loss of 3.5B KRW, retail profit 22.4B KRW, both worse than prior year
Consolidated EPS of -59 KRW (vs +154 KRW in 2024), separate EPS -40 KRW (vs +197 KRW), indicating value destruction
Treasury stock holdings of 1,414,112 shares (1.77%), with 1,221,945 shares (approx. 2.1B KRW) acquired in 2025, yet share price declined
Total borrowings 391.1B KRW, cash 22.5B KRW, net debt 368.5B KRW, gearing ratio 50% reflecting weakened financial health
On March 9, 2026, board resolved to merge into Rojen Co., Ltd. (absorbed) and also absorb subsidiary K-Brands, leading to an inevitable change in control
[AI Assessment]Poor earnings, rising debt, and the dilutive merger that transfers control pose significant risks to shareholders. Downward pressure on the stock is likely to persist in the near term.