1. SeAH Special Steel’s H1 2025 Performance: What Happened?
SeAH Special Steel’s sales in the first half of 2025 decreased by 50% year-on-year to KRW 243.1 billion. The sluggish performance of the steel wire division is identified as the main cause.
2. Hidden Growth Drivers: Why Pay Attention?
Despite the decline in sales, operating profit showed an improving trend at KRW 8.2 billion, and operating cash flow significantly increased to KRW 19.238 billion. In particular, the robust growth of the automotive parts (AT) business segment and the high Rack Bar production capacity utilization rate are positive signs.
3. Future Outlook and Investment Strategy: What Should We Do?
SeAH Special Steel is focusing on the automotive parts business through restructuring its business portfolio and is actively expanding into overseas markets. Managing raw material prices and exchange rate volatility, along with new investments and R&D achievements, are key factors for future growth.
4. Action Plan for Investors
- While being mindful of short-term stock price volatility, investors should focus on the potential for medium- to long-term growth.
- Closely monitor the recovery of the automotive industry, fluctuations in raw material prices and exchange rates, and the growth trend of overseas businesses.
- Continuously monitor the company’s risk management capabilities and the results of new business investments.