1. Hyundai’s Q1 2025 Performance: What Happened?
Hyundai Department Store recorded revenue of KRW 1.08 trillion (up 5.6% YoY), operating profit of KRW 86.9 billion (up 103.0% YoY), and net profit of KRW 45.1 billion (turned to profit YoY) in Q1 2025. While operating profit exceeded market expectations by 8%, revenue and net profit fell short by 1% and 11.7%, respectively.
2. What Drove the Performance?
Factors for Operating Profit Increase:
- – Reduced losses in the duty-free business
- – Turnaround and high profitability in the furniture manufacturing business
- – Efficient cost management
Factors for Revenue and Net Profit Decrease:
- – Possible weakened consumer sentiment
- – Impact of external factors such as exchange rate fluctuations
3. Future Investment Strategy: What Should Investors Do?
Hyundai’s robust operating profit is a positive sign. The turnaround of the furniture manufacturing business and the improvement in the duty-free business’s profitability are also encouraging. However, investors should be cautious about risk factors such as revenue falling short of market expectations, increased exchange rate volatility, the possibility of interest rate hikes, and rising oil prices and logistics costs. Therefore, investors should closely monitor macroeconomic trends and make prudent investment decisions.
4. Key Action Plan for Investors
Short-term investments should be approached cautiously, closely monitoring market conditions. From a long-term perspective, it is advisable to observe Hyundai’s business diversification and growth strategies while exploring investment opportunities.