1. What Happened? H1 2025 Earnings Breakdown

Hyundai Industry achieved consolidated revenue of KRW 182.7 billion in H1 2025, a 10.1% increase year-over-year. However, operating profit fell by 15.7% to KRW 6.8 billion, and net income plummeted by 51.1% to KRW 4.4 billion. The key takeaway is declining profitability despite revenue growth.

2. Why These Results? Analyzing the Drivers

  • Revenue Growth Driver: Increased demand for automotive parts
  • Profitability Decline Drivers: Rising raw material and SG&A expenses, increased other losses
  • Cash Flow Decline Driver: Increased working capital volatility due to higher inventory and receivables

3. What’s Next? Investment Strategy

The current investment recommendation for Hyundai Industry is ‘Neutral’. While revenue growth is positive, declining profitability and cash flow are concerning. Investors should carefully consider the following:

  • Profitability Improvement: Monitor efforts to improve profitability, including cost reduction, price increases, and new business development.
  • Cash Flow Management: Watch for improvements in working capital management and resulting cash flow.
  • Automotive Industry Transformation: Evaluate Hyundai Industry’s strategy to address trends like EVs and autonomous driving.

4. Investor Action Plan

Potential investors should carefully review upcoming earnings releases and business plans, paying close attention to the key indicators mentioned above. Focus on concrete improvements in profitability and cash flow rather than short-term stock price fluctuations. A long-term perspective focused on fundamental changes is crucial for informed investment decisions.