1. What’s happening with HMD?

HMD will hold an IR session on July 31, 2025, to announce its Q2 2025 earnings. While there was a correction disclosure to the business report in December 2024, it had no financial impact. However, investors are paying close attention to the upcoming earnings and future guidance.

2. Why are the earnings important?

Recent uncertainties in macroeconomic indicators such as raw material prices, exchange rates, and interest rates have clouded the outlook for the shipbuilding industry. Although HMD has a high order backlog, it remains vulnerable to external factors such as the slowdown in the shipping market. Therefore, this earnings announcement will be a crucial indicator of HMD’s future growth potential.

3. What are the key investment points?

  • Earnings: Did Q2 sales and operating profit exceed market expectations?
  • Orders: Any news on new order contracts?
  • Outlook: What is the outlook for the second half of the year and next year?
  • Risk Management: How effective are the hedging strategies against fluctuations in raw material prices and exchange rates?

Investors should pay particular attention to HMD’s strategies for managing the volatility of raw material prices and exchange rates. Effective risk management can pave the way for stable future growth.

4. What should investors do?

Investors should carefully analyze the IR materials and management’s comments, and assess HMD’s strategies in response to changes in macroeconomic indicators. Long-term investors who believe in HMD’s growth potential may consider a strategy of steady investment without being swayed by short-term stock price fluctuations. Conversely, investors seeking short-term gains should closely monitor stock price movements after the earnings announcement to identify opportune buying/selling timings.