1. What Happened? Hansung Cleantech H1 2025 Earnings Breakdown
Hansung Cleantech returned to profitability in the first half of 2025, posting an operating profit of KRW 4.073 billion. Q2 2025 showed growth compared to Q1, with revenue of KRW 54.1 billion, operating profit of KRW 2.2 billion, and net profit of KRW 2.1 billion. However, revenue decreased by 44.9% year-over-year, and the debt-to-equity ratio climbed to 150.88%.
2. Why These Results? Analyzing Positive & Negative Factors
- Positive Factors:
- Recovery in the environmental business sector
- New business ventures, including participation in domestic ultrapure water technology development
- Positive growth outlook for the environmental industry due to stricter global regulations
- Negative Factors:
- Decline in revenue compared to the same period last year
- High debt-to-equity ratio exceeding 150%
- High dependence on specific clients for revenue
- Macroeconomic uncertainties such as global interest rate hikes and exchange rate fluctuations
3. What’s Next? Investment Implications
While Hansung Cleantech shows potential for a turnaround, declining sales and financial burdens remain significant challenges. Investors should pay close attention to the following:
- Monitoring sales recovery trends and new business performance
- Reviewing debt management plans and debt repayment schedules
- Analyzing the impact of changes in the macroeconomic environment
4. Investor Action Plan
It is crucial to adopt a long-term perspective when evaluating the company’s growth potential and formulating an investment strategy. Investment decisions should be based on a comprehensive consideration of changes in financial indicators, new business performance, and the macroeconomic landscape.
Frequently Asked Questions
What is Hansung Cleantech’s main business?
Hansung Cleantech’s primary business is the construction, operation, and maintenance of environmental facilities. They specialize in water treatment and desalination plants, and waste treatment facilities.
What were Hansung Cleantech’s H1 2025 financial results?
Hansung Cleantech reported revenue of KRW 101.079 billion, operating profit of KRW 4.073 billion, and net profit of KRW 3.849 billion in H1 2025, marking a return to profitability.
What are the key factors to consider when investing in Hansung Cleantech?
Investors should consider the year-over-year decline in revenue, the high debt-to-equity ratio, and macroeconomic volatility. Ongoing monitoring of new business performance and financial health management is also crucial.