1. What Happened? H1 2025 Performance Overview

Hancom Inc. reported revenue of KRW 147.3 billion, operating profit of KRW 24.8 billion, and net income of KRW 21.6 billion for H1 2025. Revenue and operating profit declined by 51.7% and 38.7% YoY, respectively. However, net income increased by 54.3% YoY, marking a return to profitability. While the SW segment benefited from the successful transition to SaaS, a sharp decline in the manufacturing segment weighed on overall results.

2. Why These Results? Segment Breakdown

  • SW Segment: Positive growth in AI-powered services like ‘Hancom Docs AI’ and ‘Hancom Assistant,’ coupled with an increasing proportion of subscription revenue. However, the overall revenue decline warrants attention.
  • Manufacturing Segment: A significant drop in defense-related sales heavily impacted overall performance. Expansion into new defense projects offers potential, but tangible results will take time.
  • Other Segment: Despite growth in the digital marketing market, declining revenue suggests the need for a strategic review.
  • Financial Segment: High non-performing loan ratios raise concerns about credit risk management.

3. What’s Next? Outlook & Investment Strategy

Hancom is positioning itself for future growth with its AI and SaaS offerings, but the underperforming manufacturing segment and macroeconomic uncertainties pose investment risks. The performance of the SW segment, restructuring of the manufacturing division, and risk management within the financial segment will be key drivers of future stock performance.

4. What Should Investors Do? Action Plan

  • Short-Term Investors: Closely monitor the performance of the manufacturing segment and broader macroeconomic conditions, being mindful of potential short-term volatility.
  • Long-Term Investors: Focus on the growth potential of the AI and SaaS business, adopting a long-term investment horizon.