1. Hanong Chemicals H1 2025 Performance: What Happened?

Hanong Chemicals reported revenue of KRW 115.4 billion (down 13.9% YoY), operating profit of KRW 2.2 billion (down 61.3% YoY), and net profit of KRW 3.5 billion (down 15.3% YoY) for H1 2025. While exceeding market expectations (KRW 0), the results reflect the impact of the overall economic downturn and sluggish consumption.

2. What Drove the Performance Change?

The decline in revenue is attributed to the economic slowdown, decreased consumption and investment, and oversupply of chemical products from China. The decrease in operating profit is primarily due to the decline in revenue, coupled with increased cost of goods sold and higher SG&A expenses. However, investment income from affiliates and increased financial income partially offset the decline in net profit.

3. What Does the Future Hold for Hanong Chemicals?

Despite the challenging business environment, Hanong Chemicals maintains a solid financial structure and continues to invest in future growth through capacity expansion and new business ventures. While there is potential for improved performance with a global economic recovery and improvement in the chemical industry, volatility in raw material prices and exchange rates remain ongoing risk factors.

  • Positive Factors: Solid financial structure, active facility investment, new business venture (high-pressure gas)
  • Negative Factors: Declining revenue and profitability, raw material price volatility, macroeconomic uncertainty

4. What Action Should Investors Take?

Investors should adopt a long-term perspective, considering the company’s financial soundness, growth investments, and long-term business competitiveness, rather than reacting to short-term performance fluctuations. Continuous monitoring and risk management regarding raw material price and exchange rate volatility are crucial.