Korea Stock Market Insights

Tag: Miwon Chemical

  • Miwon Chemical (134380) H1 2025 Earnings Report Analysis: Poor Performance, What’s the Investment Strategy?

    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.

  • Miwon Chemical: CEO’s Stake Change – What Investors Need to Know

    What Happened?

    CEO Jeong-Don Kim’s stake decreased slightly from 57.15% to 56.87%. This change excludes related parties and is attributed to over-the-counter sales by related parties, Ga-Je-Sun and Miwha Logistics Co., Ltd.

    Why Does It Matter?

    Changes in CEO stake can trigger market concerns about management stability and future business strategies. For Miwon Chemical, which recently reported weak Q1 2025 earnings, these concerns can be amplified.

    Stake Change: What’s Next?

    Limited Impact on Management Control

    As CEO Kim retains a majority stake, the impact of this change on management control is expected to be limited. However, continued selling by related parties could negatively impact investor sentiment.

    Earnings Recovery is Key

    Miwon Chemical’s future stock performance hinges on earnings recovery from Q2 2025 onwards. Managing raw material prices and exchange rate volatility, along with securing new growth engines, will be crucial.

    Investor Action Plan

    • Short-term investors: Exercise caution due to increased stock volatility. Review investment strategies after the Q2 2025 earnings announcement.
    • Long-term investors: If you believe in Miwon Chemical’s fundamentals and growth potential, consider maintaining a long-term investment perspective despite short-term price fluctuations.
    What is the reason for CEO Kim’s stake change?

    According to the disclosure, over-the-counter sales by related parties, Ga-Je-Sun and Miwha Logistics Co., Ltd., are the reason for the stake change. The exact reason for the sale has not been disclosed.

    How will this stake change affect Miwon Chemical’s stock price?

    In the short term, it could increase stock volatility due to weakened investor sentiment. However, the long-term impact depends on earnings recovery from Q2 2025 onwards.

    Should I invest in Miwon Chemical?

    Investment decisions depend on individual investment preferences and judgment. Make informed investment decisions based on the information provided in this article.