1. Hanwha Investment & Securities H1 2025 Performance: What Happened?

Hanwha Investment & Securities recorded a net profit of KRW 66.5 billion on a consolidated basis and KRW 61.7 billion on a standalone basis in the first half of 2025. Profits related to derivatives drove earnings growth, reaching KRW 892.1 billion. Overseas market expansion, digital transformation, and new business investments were also cited as key achievements.

2. Drivers of Strong Performance and Potential Risks: Why?

  • Positive Factors: Solid earnings growth, overseas expansion (Vietnam, Indonesia, Singapore), digital transformation and fintech investment, stable financial soundness (BIS ratio 743%), diversified business portfolio (WM, Trading, Wholesale, IB)
  • Risks and Concerns: Concentration of profits in derivatives, intensified competition in the domestic securities industry, overseas business risks (political, economic), legal litigation risks (CERCG ABCP), macroeconomic uncertainty (interest rates, inflation, economic slowdown)

3. Correlation with Market Conditions: So What?

The financial market in the first half of 2025 was characterized by expectations of global interest rate cuts, increased exchange rate volatility, heightened volatility in the domestic stock market, and rising oil prices. Hanwha’s derivatives profits are susceptible to market volatility, and the performance of its overseas business expansion may vary depending on local market conditions.

4. Action Plan for Investors: What Should You Do?

  • Short-Term Investment: Be mindful of macroeconomic uncertainty and market volatility, and consider the possibility of short-term earnings fluctuations.
  • Mid- to Long-Term Investment: Pay attention to the results of overseas market expansion and digital transformation, as well as the stable profitability of the derivatives division.
  • Risk Management: Keep an eye on the outcome of legal proceedings and the impact of macroeconomic volatility on financial soundness.