1. What Happened? Q2 2025 Earnings Miss

Hanjin Heavy Industries & Construction Holdings reported revenue of KRW 201.2 billion, operating profit of KRW 0.8 billion, and a net loss of KRW 0.6 billion in Q2 2025, significantly missing market expectations. The sharp decline in operating profit, from KRW 38.4 billion in Q1 to KRW 0.8 billion in Q2, is a particularly alarming sign.

2. Why the Underperformance? Analyzing the Causes

The disappointing results can be attributed to two main factors: the volatile performance of its key subsidiaries, Daeryun E&S (city gas), Hanil Leisure (golf courses), and Daeryun Power (power generation), and the continued impact of macroeconomic headwinds such as high interest rates, inflation, and a global economic slowdown. The golf course business is particularly vulnerable to seasonal factors and economic downturns, warranting further analysis.

3. What’s Next? Future Outlook

Increased stock price volatility is expected in the short term. However, from a long-term perspective, the growth potential of the power generation business and the stability of the city gas business remain positive factors. The declining trend in the consolidated debt-to-equity ratio is also encouraging. Nevertheless, increased competition in the golf course business and the still-high consolidated debt-to-equity ratio require ongoing monitoring.

4. Action Plan for Investors

  • Short-term investors: Carefully assess the reasons for the earnings miss and the future outlook before making investment decisions.
  • Long-term investors: Continuously monitor the growth of the power generation business and the improvement in financial health.
  • All investors: Stay informed through the company’s official announcements and IR materials, and consult with investment professionals.