1. Harim Holdings H1 2025 Performance: What Happened?
Harim Holdings achieved consolidated revenue of KRW 6.5144 trillion and operating profit of KRW 458.8 billion in the first half of 2025, showing robust growth of 12.97% and 22.37% year-on-year, respectively. Net profit also significantly improved to KRW 370.2 billion.
2. Drivers of Growth: Why the Strong Performance?
- Shipping (Pan Ocean): Maintained stable performance through securing long-term and new contracts and increasing operational efficiency despite volatility in international shipping rates.
- Food & Food Service: Drove revenue growth with a strong market presence in the chicken business, launching new HMR products, and strengthening online channels.
- Yangjae Advanced Logistics Complex Development: The logistics complex development project, expected to be a future growth engine, is progressing smoothly.
3. Hidden Risks: What are the Potential Dangers?
- Exchange Rate Volatility: A rise in the KRW/USD exchange rate could lead to increased import costs and decreased overseas sales.
- Feed & Livestock: Volatility in international grain prices and livestock disease risks could negatively impact profitability.
- Financial Burden of Some Subsidiaries: Managing the financial soundness of subsidiaries with high debt ratios is necessary.
- Intensifying Competition in Distribution: Responding to the slowdown in the home shopping market and intensifying online competition is crucial.
4. Investor Action Plan: How Should You Invest?
While Harim Holdings’ growth potential is evident, investors should keep an eye on external environmental changes and potential risks. Careful investment decisions should be made by thoroughly analyzing key variables such as exchange rates, raw material prices, and the competitive landscape, and evaluating the company’s risk management capabilities.
Frequently Asked Questions
What are Harim Holdings’ main businesses?
Harim Holdings operates various business segments including shipping (Pan Ocean), feed & livestock, food & food service, and distribution.
What were the main growth drivers for Harim Holdings’ Q2 earnings?
The stable performance of the shipping division and the growth of the food division, particularly the chicken business and the launch of new HMR products, were the main growth drivers.
What should investors be aware of when investing in Harim Holdings?
Investors should consider factors such as exchange rate volatility, fluctuations in raw material prices, livestock disease risks, and the financial burden of some subsidiaries.