1. What Happened? : Q2 Earnings Highlights

Namhwa Industries reported KRW 6.2 billion in revenue, KRW 2.1 billion in operating income, and KRW 3 billion in net income for Q2 2025. This represents a significant improvement from Q1, but revenue remains down year-over-year.

2. Why Did This Happen? : Drivers of Earnings Change

  • Positive Factors: Increased investment income from affiliates, improved cost management efficiency.
  • Negative Factors: Continued sales decline due to a downturn in the golf industry and increasing demand for overseas golf.

3. What’s Next? : Outlook and Investment Strategy

In the short term, the Q2 earnings improvement is expected to have a positive impact on the stock price. However, investors should closely monitor the continued sales decline and the progress of new projects. In the medium to long term, the success of the Muan CC Resort project will be a key determinant of the company’s growth prospects. The potential synergy with the KTX opening will be a crucial factor to watch.

4. What Should Investors Do? : Action Plan

Don’t get carried away by the short-term earnings improvement. Consider the overall outlook for the golf industry, uncertainties surrounding new projects, and macroeconomic variables before making investment decisions. Continuous monitoring of Q3 2025 earnings and the progress of new projects is crucial.