1. SeAH Steel H1 2025 Performance: What Happened?
SeAH Steel’s consolidated revenue and operating profit decreased year-over-year in H1 2025, reaching ₩793.74 billion and ₩46.51 billion, respectively. Preliminary results announced on August 14th further confirmed this trend, with revenue at ₩414.8 billion, operating profit at ₩20.9 billion, and a significant drop in net profit to ₩8.6 billion, falling short of expectations.
2. Analyzing the Decline and Positive Factors: Why These Results?
The decline can be attributed to rising raw material prices and sluggish downstream industry demand. However, there are positive developments. SeAH Steel benefited from the abolition of US quotas and increased global demand, leading to strong export performance. Furthermore, the company has secured future growth drivers by strengthening its competitiveness in the offshore wind power sector, expanding its steel pipe business, and investing in R&D for eco-friendly energy materials. Their effective management of exchange rate fluctuations is also a positive sign.
3. SeAH Steel’s Future and Investment Strategy: What Lies Ahead?
While SeAH Steel demonstrates long-term growth potential, the short-term business environment remains challenging. Investors should closely monitor external factors like exchange rate and interest rate volatility, global economic conditions, and protectionist trade policies. Furthermore, the success of large-scale investments and the company’s working capital management capabilities will be crucial.
4. Key Checkpoints for Investors: What to Watch For
- Positive Factors: Offshore wind power expansion, steel pipe business growth, technological competitiveness, exchange rate management.
- Negative Factors: Declining profitability, weakened cash flow, export market uncertainties, financial soundness.
SeAH Steel’s future presents a mix of opportunities and challenges. Investors should carefully consider both the company’s fundamentals and external factors before making investment decisions.