1. Koryo Industry’s H1 2025 Performance: What Happened?
Koryo Industry reported revenue of KRW 152.097 billion in H1 2025, a 1.1% decrease year-over-year. While sales volume in the feed segment increased by 2%, a decline in selling prices led to a 2.9% drop in revenue. The other business segment saw a KRW 0.26 billion increase due to higher sales from subsidiaries.
2. Analyzing the Decline: Why These Results?
Rising raw material costs, driven by international grain prices and exchange rate volatility, are the primary factors behind the decline. Despite high factory utilization rates, the company appears to have struggled to fully pass on increased input costs to consumers.
3. Koryo Industry’s Fundamentals: What’s Next?
- Positive Factors: Stable feed business foundation, high production efficiency, improved financial health, continuous R&D investment.
- Negative Factors: Profitability pressures, declining sales trend, liquidity management needs, low shareholder value, intensifying competition.
Given the continuing uncertainty in the macroeconomic environment, investors should consider Koryo Industry’s sensitivity to fluctuations in raw material prices and exchange rates.
4. Action Plan for Investors: What Should You Do?
- Monitor profitability improvement strategies (pricing effects, sales volume changes, cost reduction efforts).
- Manage financial risks (debt dependency, liquidity, impact of interest rate fluctuations).
- Analyze sensitivity to macroeconomic variables (exchange rates, international grain prices).
- Review stock momentum and valuation (supply and demand factors, PER, PBR).
While Koryo Industry is striving to improve its fundamentals amidst a challenging business climate, a cautious approach is warranted when making investment decisions.