1. Miwon Chemical H1 2025 Performance Analysis
Miwon Chemical reported sales of KRW 134.3 billion, operating profit of KRW 15.24 billion, and net income of KRW 11.79 billion for the first half of 2025. These figures represent a year-on-year decrease of 5.2%, 46.8%, and 57.4%, respectively. Earnings per share (EPS) also declined by 55.6% to KRW 5,871.
2. Factors Contributing to the Decline
The decline in performance is attributed to a combination of factors, including decreased sales in the milling and sulfuric acid segments, rising raw material prices, and increased selling, general, and administrative expenses. A significant increase in alcohol-based raw material prices (58.7%) led to a rise in the cost of goods sold ratio to 70.9%. While the surfactant segment saw a slight increase in sales, it wasn’t enough to offset the overall decline.
3. Investment Strategy and Considerations
Miwon Chemical’s performance challenges may persist due to ongoing uncertainties, such as rising raw material prices and economic slowdown concerns. Investors should carefully consider the potential for future performance improvement and associated risks. The lack of market expectation data further emphasizes the need for cautious investment decisions.
Miwon Chemical Investment FAQs
Q1. What are Miwon Chemical’s main businesses?
Miwon Chemical is a fine chemical company that produces surfactants, milling products, and sulfuric acid.
Q2. Why were H1 2025 earnings disappointing?
The decline is attributed to a combination of decreased sales in certain segments, increased raw material prices, and higher operating expenses.
Q3. Is Miwon Chemical a good investment?
The company’s performance challenges may persist, so investors should proceed with caution. Thorough analysis of market conditions and the company’s future outlook is crucial before making any investment decisions.