1. What Happened?

Hyundai Home Shopping reported revenue of KRW 923.7 billion (down 4% YoY), operating profit of KRW 30.1 billion (up 3% YoY), and a net profit of KRW 28.7 billion for H1 2025. Despite the revenue decline, operating and net income figures presented a positive surprise, exceeding market forecasts.

2. Why These Results?

The company’s efforts to diversify its business portfolio (Hansae, Hyundai L&C, etc.) following its transition to a holding company structure contributed positively to the results. The growth of Hansae and Hyundai L&C was particularly noteworthy. However, the overall economic slowdown and weakened consumer sentiment led to the decline in revenue. Investment activities, such as the construction of a new annex building, also contributed to a decrease in operating cash flow.

3. What’s Next?

Hyundai Home Shopping plans to focus on securing future growth engines by strengthening its mobile shopping platform, enhancing its media commerce competitiveness, and developing eco-friendly materials. The growth potential of its subsidiaries, including Hansae and Hyundai Bioland, is also anticipated. However, macroeconomic uncertainties, such as high interest rates, a strong won, and the economic downturn, remain persistent risk factors.

4. What Should Investors Do?

In the short term, the positive earnings surprise may have a positive impact on the stock price. However, the declining revenue trend and macroeconomic uncertainties warrant careful consideration. For the long term, investors should closely monitor the growth of subsidiaries, the company’s ability to enhance its mobile and media commerce competitiveness, and its efforts to improve operating cash flow. A comprehensive evaluation is crucial for making informed investment decisions.