1. Aekyung Chemical H1 2025 Earnings: What Happened?

Aekyung Chemical reported sales of KRW 376.1 billion (down 12.7% YoY), operating loss of KRW 800 million, and net loss of KRW 6.9 billion in H1 2025. All business segments, including plasticizers, household chemicals, synthetic resins, and bio & energy, experienced declines.

2. What Caused the Decline?

  • Plasticizers: Exports declined due to falling international oil prices and a slowdown in downstream industries.
  • Household Chemicals: Growth slowed due to intensified competition.
  • Synthetic Resins: Directly impacted by the sluggish downstream industries.
  • Bio & Energy: Performance declined significantly due to market volatility in renewable energy, rising raw material prices, and increased competition.

3. What’s the Outlook?

Macroeconomic uncertainty and poor performance are expected to negatively impact stock prices in the short term. However, efforts to secure future growth engines, such as investments in eco-friendly products and the establishment of TPC production facilities, are positive. A mid-to-long-term turnaround can be expected through improved cost management and enhanced business competitiveness.

4. What Actions Should Investors Take?

A conservative investment strategy is necessary in the short term. It’s crucial to carefully monitor future earnings announcements, new business progress, and changes in macroeconomic variables when making investment decisions. Continuous observation of external factors such as exchange rate fluctuations, interest rate changes, and oil and raw material price fluctuations is particularly important.