1. HRS H1 2025 Earnings Analysis: What Happened?

HRS recorded sales of KRW 20.2 billion (a 7.1% decrease YoY) and operating profit of KRW 3.9 billion (a 14.9% decrease YoY) in the first half of 2025. The decline in sales of silicone compound products and sluggish exports to China are identified as the primary causes.

2. Analysis of the Sluggish Performance: Why These Results?

The global economic slowdown and uncertainties surrounding the Chinese economy directly impacted HRS’s performance. Increased selling, general, and administrative expenses also contributed to the decline in profitability. The increase in R&D expenses and other administrative costs was particularly noticeable.

3. Hidden Opportunities for HRS: What Should We Do?

Despite the short-term downturn, HRS exhibits several positive aspects. First, its core business competitiveness remains valid. Second, investments to secure future growth drivers are underway. The new facility expansion at the Asan plant and land acquisition in the Seotan Industrial Complex will serve as a foundation for long-term growth. Third, the company maintains a stable financial structure. High cash and cash equivalents mitigate liquidity risks.

4. Action Plan for Investors: What’s Next?

  • Explore investment opportunities from a long-term perspective: Considering HRS’s technological capabilities, its connection to growth industries, and its investment activities, the long-term investment value remains high.
  • Monitor potential risk factors: Carefully monitor potential risk factors such as the lawsuit related to the Seotan Industrial Complex, exchange rate volatility, and the Chinese economic situation.
  • Check the latest information: Before making any investment decisions, be sure to check the latest market information and company disclosures.