1. What Happened? H1 2025 Earnings Analysis

Kolon Mobility Group reported revenue of KRW 1.1367 trillion, operating profit of KRW 158 billion, and net income of KRW 49 billion in the first half of 2025, marking a return to profitability. Revenue increased by 6.7% year-on-year, while operating profit surged by an impressive 52%. Q2 performance significantly contributed to the positive momentum for the half-year results.

2. Why These Results? Analyzing Positive & Negative Factors

  • Positive Factors:
    • Steady growth in the import car market and Kolon Mobility Group’s strong brand power
    • Efforts to enhance shareholder value, including treasury stock cancellation and share exchange agreements
  • Negative Factors:
    • High debt-to-equity ratio of 284% and interest rate hike risks
    • Deterioration of operating cash flow (KRW -5.6 billion)
    • Potential decline in profitability due to the rising KRW/USD exchange rate

3. What’s Next? Outlook and Investment Strategy

While Kolon Mobility Group’s improved earnings are positive, the high debt-to-equity ratio and exchange rate volatility remain significant risks. Close monitoring of the KRW/USD exchange rate and the company’s financial restructuring efforts is necessary. The integration with the largest shareholder is expected to positively impact long-term growth.

4. What Should Investors Do? Action Plan

The current investment recommendation is “Neutral”. A cautious approach is advised, considering both the improving earnings trend and the existing risk factors. It is recommended to reassess investment decisions after confirming concrete results of financial structure improvement.