1. Q2 Earnings: A Mixed Bag

Hyundai Motor Securities’ Q2 2025 results present a stark contrast: a significant revenue increase alongside a decline in operating profit. Revenue reached 693.6 billion KRW, a 62.9% jump from Q1, while operating profit fell slightly to 27 billion KRW. Net income, however, showed growth, reaching 20.7 billion KRW, a 7.2% increase.

  • 1.1 Drivers of Revenue Growth

    The surge in revenue is primarily attributed to strong performance in derivatives and asset management. However, the sustainability of this growth remains uncertain and requires further investigation.

  • 1.2 Why the Profit Decline?

    The decrease in operating profit could be due to several factors, including underperformance in the investment banking division, increased valuation losses on financial instruments, or a deteriorating market environment.

2. Key Concerns and Outlook

The most concerning aspect of Hyundai Motor Securities’ Q2 performance is the decline in operating profit despite the revenue growth. This could be a temporary phenomenon, but it might also signal underlying structural challenges. The company’s high proportion of fair-value measured financial instruments and its reliance on affiliates remain significant risk factors. Given the potential for increased market volatility, strengthening risk management and diversifying revenue streams are crucial.

  • 2.1 Investor Action Plan

    Investors should carefully analyze the detailed earnings report when it’s released to understand the reasons behind the profit decline and assess the company’s risk management capabilities and future strategies.