1. Huvis H1 2025 Performance: A Closer Look at the Comeback

Huvis achieved a turnaround in the first half of 2025, reporting sales of KRW 464.6 billion, operating profit of KRW 8.82 billion, and net income of KRW 12.3 billion. This positive shift marks a recovery from the setbacks of 2024. However, a decline in Q2 operating profit compared to Q1, attributed to slowing demand and raw material price volatility, warrants attention.

2. Drivers of Profitability and Sustainability

The return to profitability stems from a partial recovery in downstream industries and cost-cutting initiatives. Huvis’s dominant market share in the domestic staple fiber market provides a stable revenue base, and new ventures like Meta-Aramid offer future growth potential. However, the looming possibility of a global economic slowdown poses a significant threat.

3. Key Investment Risks to Consider

Several risk factors should be considered before investing. The high debt-to-equity ratio of 203% remains a financial burden, while raw material price fluctuations and exchange rate risks can impact profitability. Rising container freight costs from China could further squeeze margins due to increased logistics expenses.

  • High Debt-to-Equity Ratio (203%)
  • Raw Material Price Volatility
  • Exchange Rate Fluctuations
  • Rising Chinese Container Freight Costs

4. Huvis Stock Outlook and Investment Strategy

A cautious approach is recommended in the short term, pending Q3 results and market consensus updates. Long-term investors should focus on the performance of new businesses, global economic recovery, and debt reduction efforts. The successful establishment of the Meta-Aramid business and expansion of high-value-added products will be key drivers of future growth.