1. SeAH Special Steel’s H1 2025 Performance: What Happened?
SeAH Special Steel’s sales in the first half of 2025 decreased by 50% year-on-year to KRW 243.1 billion. The sluggish performance of the steel wire division is identified as the main cause.
2. Hidden Growth Drivers: Why Pay Attention?
Despite the decline in sales, operating profit showed an improving trend at KRW 8.2 billion, and operating cash flow significantly increased to KRW 19.238 billion. In particular, the robust growth of the automotive parts (AT) business segment and the high Rack Bar production capacity utilization rate are positive signs.
3. Future Outlook and Investment Strategy: What Should We Do?
SeAH Special Steel is focusing on the automotive parts business through restructuring its business portfolio and is actively expanding into overseas markets. Managing raw material prices and exchange rate volatility, along with new investments and R&D achievements, are key factors for future growth.
4. Action Plan for Investors
- While being mindful of short-term stock price volatility, investors should focus on the potential for medium- to long-term growth.
- Closely monitor the recovery of the automotive industry, fluctuations in raw material prices and exchange rates, and the growth trend of overseas businesses.
- Continuously monitor the company’s risk management capabilities and the results of new business investments.
Frequently Asked Questions
What are SeAH Special Steel’s main businesses?
SeAH Special Steel manufactures special steel wire rods and automotive parts. The company is particularly focused on growing its automotive parts business.
Why was the performance in the first half of 2025 sluggish?
The decline in sales in the steel wire division was the main cause. However, the automotive parts business maintained solid growth.
What is the outlook for SeAH Special Steel?
There are both positive factors, such as the recovery of the automotive industry, stabilization of raw material prices, and growth in overseas business, and negative factors, such as the volatility of raw material prices and the possibility of a global economic recession. Careful analysis is required when investing.
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