1. What Happened? YW’s H1 2025 Earnings Breakdown
YW reported consolidated revenue of KRW 10.53 billion (8.3% YoY growth) for H1 2025. However, revenue from the rental business plummeted by 30.8% to KRW 8.64 billion. Operating income and net income also declined by 23.6% and 25.5%, respectively. If the preliminary earnings figures are confirmed, this represents a significant earnings shock, far below market forecasts.
2. Why These Results? Segment-Specific Analysis
- Rental Business: Intensified market competition, economic slowdown, and weakened product competitiveness significantly impacted both revenue and profitability.
- Corporate Finance: Despite a slight decrease in revenue, this segment delivered a robust 84.8% operating profit margin, acting as a stable revenue stream.
3. What’s Next? Future Outlook and Investment Strategies
The struggles in the rental business are likely to negatively impact YW’s stock price. However, the strong corporate finance segment and stable financial structure are positive factors. Investors should closely monitor YW’s efforts to enhance competitiveness and improve profitability in the rental business, the sustainability of growth in the corporate finance segment, and changes in the macroeconomic environment.
4. Investor Action Plan
- Monitor the rental business recovery strategy and performance improvement trends.
- Evaluate the sustainability of corporate finance growth and risk management capabilities.
- Verify the preliminary earnings figures and analyze the company’s response to the performance downturn.
Frequently Asked Questions
What is the main reason for YW’s poor performance in H1 2025?
The sharp decline in revenue and profitability in the rental business segment is the primary reason. A combination of intensified market competition, economic slowdown, and weakening product competitiveness is believed to have contributed to this downturn.
How is YW’s corporate finance business performing?
The corporate finance business is maintaining a high operating profit margin and generating stable revenue. It is one of YW’s core businesses and is partially offsetting the poor performance of the rental business.
Should I invest in YW?
The struggles in the rental business are concerning, but the growth in corporate finance and the stable financial structure are positive. Before making an investment decision, carefully consider the potential for recovery in the rental business and the sustainability of growth in the corporate finance segment.