1. What Happened? Hanil Holdings H1 2025 Earnings Analysis
Hanil Holdings recorded consolidated revenue of KRW 543.1 billion, operating profit of KRW 47.3 billion, and net income of KRW 24.1 billion in H1 2025, down 15.4%, 65.6%, and 75.4% year-on-year, respectively. The decline in sales and operating rates in the building materials segment was the main cause.
2. Why Did This Happen? Analyzing the Causes of Underperformance
The construction downturn significantly reduced demand for major building materials such as cement and ready-mixed concrete, and the decline in selling prices worsened profitability. Rising raw material prices and high interest rates also added to the burden.
3. What’s Next? Future Outlook and Investment Strategies
Hanil Holdings plans to enhance its competitiveness in the building materials segment by achieving economies of scale and creating synergy through the merger of Hanil Cement and Hanil Hyundai Cement. It also plans to focus on its core business and restructure its portfolio by selling its stake in Seoul Land. However, the recovery of the construction market and macroeconomic uncertainties remain variables. Therefore, the investment opinion is ‘Neutral,’ and it’s crucial to monitor the synergy effects of the merger and the recovery trend of the construction market.
4. What Should Investors Do? Action Plan
- Check the roadmap for synergy creation and efficiency enhancement from the merger.
- Review the execution and performance of the business diversification strategy in preparation for a prolonged construction downturn.
- Confirm strengthened financial risk management against fluctuations in interest rates, exchange rates, and raw material prices.