1. SeAH Besteel H1 2025 Performance: What Happened?

SeAH Besteel’s H1 2025 revenue reached 243.1 billion KRW, showing slight growth year-over-year. However, operating profit remained at 8.2 billion KRW, meeting market expectations, while net profit significantly missed the mark at 3.2 billion KRW. The net profit margin of 1.32% signals a concerning decline in profitability.

2. Reasons for Underperformance: Why These Results?

While the steel wire division maintained solid performance, it was impacted by fluctuations in raw material and sales prices. The AT (automotive parts) division returned to profitability but faces continued uncertainty in the global automotive industry. External factors such as exchange rate fluctuations, interest rate volatility, and raw material price changes negatively impacted profitability.

3. Outlook and Investment Strategies: What’s Next?

SeAH Besteel needs to focus on improving profitability through cost reduction and increasing the proportion of high-value-added products. Managing risks related to exchange rate and interest rate fluctuations is also crucial, as is maximizing the growth potential of the AT division. The current investment recommendation is ‘Neutral’. Given the mix of positive and negative factors, careful observation of future performance improvements is essential.

4. Investor Action Plan: What Should Investors Do?

  • Short-term investors: Closely monitor performance improvements and market conditions for prudent investment decisions.
  • Long-term investors: Consider the company’s long-term growth potential when developing investment strategies.
  • All investors: Continuously monitor the impact of external factors such as exchange rates, interest rates, and raw material prices.