1. Kumho Hitech’s 2025 Semi-Annual Performance: Light and Shadow

Kumho Hitech recorded sales of KRW 199.9 billion and operating profit of KRW 3.38 billion in the first half of 2025. While the auto parts business maintained stable sales, operating profit decreased due to increased R&D expenses in the bio business and fluctuations in exchange rates. Q2 saw a disappointing net loss.

2. Business Segment Analysis: Auto Parts vs. Biopharmaceuticals

Auto Parts Business: Maintaining a stable sales base, but responding to external factors such as intensifying competition and rising raw material prices is crucial. New orders related to electric vehicles/autonomous driving are positive signs.

Biopharmaceutical Business: The progress of clinical trials for DNP002, DNP007, and technology transfer agreements demonstrate future growth potential. However, the uncertainty of new drug development still exists, and clinical trial results and technology transfer performance will significantly impact future corporate value.

3. Key Points for Investors

Investors considering Kumho Hitech should pay attention to the following:

  • Bio-pipeline clinical trial results: The success or failure of clinical trials will have the biggest impact on corporate value.
  • Competitiveness of the auto parts business: Securing competitiveness in the electric vehicle/autonomous driving market is important.
  • Financial stability: It is necessary to check the ability to respond to fluctuations in exchange rates and raw material prices.

4. Investment Strategy: A Cautious Approach Is Necessary

Kumho Hitech has growth potential, but there are also short-term uncertainties. It is advisable to make investment decisions carefully while confirming the visibility of performance in the bio sector and strengthening the competitiveness of the auto parts business.