1. What Happened? : H1 2025 Earnings Breakdown

Samhwa Crown reported revenue of KRW 84.8 billion (slightly up YoY) and operating profit of KRW 3.7 billion (down YoY) in H1 2025. While sales saw marginal growth, the decline in operating profit was primarily attributed to sluggish exports due to the global economic downturn and volatile raw material prices.

2. Why These Results? : Core Business Analysis

  • CAP Business: Maintained solid performance based on stable domestic demand, but experienced export decline due to the global economic slowdown.
  • Plastic Container Business: Showed growth potential driven by the K-Beauty boom, but faces challenges from dependence on the Chinese market and intensifying competition.

3. What’s Next? : Future Outlook and Investment Strategies

Samhwa Crown received a neutral investment rating considering the stability of the CAP business and the growth potential of the plastic container business. However, continuous monitoring of exchange rate volatility and export market diversification strategies is necessary. Key factors to watch in the second half include the recovery of CAP exports and the acquisition of new clients for the plastic container business.

4. Investor Action Plan

Investors should consider the following:

  • Positive Factors: Stable CAP business, growth potential of plastic container business, treasury stock acquisition
  • Negative Factors: Sluggish exports, exchange rate volatility, raw material price fluctuations

It’s crucial to make investment decisions based on continuous monitoring of changes in macroeconomic indicators and the company’s strategic responses.