Kyeong-In Corporation H1 2025 Performance: A Mixed Bag

Kyeong-In Corporation’s first-half 2025 results present a mixed picture, with a return to operating profit but a net loss. Operating profit reached ₩10.738 billion, marking a return to profitability. However, the company reported a net loss of ₩0.802 billion. Revenue increased year-over-year to ₩199.762 billion but decreased compared to the full-year 2024 results.

Analyzing Kyeong-In’s Performance Challenges

Declining gross profit margins in the dye segment and intensifying competition in the chemical segment are key factors contributing to the performance challenges. Rising raw material prices and increased competition pressured dye segment profitability, while price competition for products like BCMB and potassium sulfate intensified in the chemical segment.

Kyeong-In’s Future Growth Drivers and Investment Strategies

Kyeong-In is pursuing future growth drivers through new product development, including digital textile printing inks, UV inks, and anodizing dyes, as well as the completion of its ADPOS production facility. However, high debt-to-equity ratios and foreign exchange risk remain key concerns for investors. A cautious approach is recommended, with careful monitoring of future earnings trends, new business performance, and macroeconomic conditions.

Key Investment Takeaways

  • Positives: Return to operating profit, potential growth from new businesses, R&D investment.
  • Negatives: Net loss, low operating profit margin, high debt-to-equity ratio, foreign exchange risk.