1. Hansem Q1 2025 Earnings: Key Highlights

Hansem’s Q1 2025 revenue came in at ₩459.4 billion, missing the consensus estimate of ₩466.8 billion by 2%. Operating profit was a mere ₩2.3 billion, a staggering 72% below the ₩8.2 billion consensus. The widening operating loss in the Rehaus segment is identified as a major contributor to the overall disappointing performance.

2. Reasons Behind the Earnings Miss

The primary factors behind the Rehaus segment’s struggles include intensified competition in the home remodeling market and shrinking profit margins due to rising raw material costs. Additionally, rising interest rates and fluctuating exchange rates increased financial burdens, negatively impacting Hansem’s overall performance.

3. Investment Strategy: Should You Invest in Hansem Now?

Short-term volatility is expected due to the disappointing earnings report. However, a long-term perspective requires considering the potential turnaround of the Rehaus segment, Hansem’s market growth potential, and its brand recognition. Investors should carefully monitor the Rehaus segment’s recovery, macroeconomic indicators, and the company’s pursuit of new growth engines before making any investment decisions.

4. Key Checkpoints for Investors

  • Q2 2025 performance of the Rehaus segment and its path to profitability
  • Fluctuations in raw material prices, exchange rates, and interest rates
  • Changes in housing market and construction indicators
  • New business ventures or efforts to strengthen competitiveness in existing businesses