1. KBG H1 2025 Earnings Analysis: What Happened?
KBG reported a significant decline in profitability in H1 2025, with revenue of KRW 12.325 billion (down 5.0% YoY) and operating profit of KRW 1.645 billion (down 43.3% YoY). Net income also decreased by 41.3% to KRW 1.578 billion.
2. Analyzing the Causes of the Decline and Positive Factors: Why These Results?
Reasons for Decline
- – Macroeconomic uncertainty
- – Decline in investments in major industries
- – Increased initial investment costs for new businesses
Positive Factors
- – Improved debt-to-equity ratio of 10.48% (enhanced financial health)
- – Improved operating cash flow
- – Investments in new businesses to secure future growth engines, such as electric vehicles and secondary batteries
3. KBG Investment Strategy: What Should Investors Do?
Long-term Investment
- – Monitor the performance and profitability improvement of new businesses
- – Focus on growth areas such as secondary battery materials and high-performance silicone materials
Mid-to-Short-term Investment
- – Considering the sluggish performance and valuation burden, consider a gradual purchase strategy or a wait-and-see approach
Risk Management
- – Monitor risk factors such as exchange rate fluctuations, raw material price volatility, and dependence on China
- – Adjust investment portfolio accordingly
4. Key Points to Watch
- – Revenue and profit contribution of new businesses
- – Profitability improvement of existing businesses and changes in the sales ratio of high-value-added products
- – The company’s ability to manage exchange rate and raw material price fluctuations
- – Global economic recovery and resumption of investment in key demand industries