1. What Happened at Dongwon Industries in H1 2025?
Dongwon Industries achieved consolidated revenue of KRW 4.6779 trillion and operating profit of KRW 258.5 billion in H1 2025, maintaining solid growth. Stabilized raw material prices, strong performance in core business segments, and efficient cost management contributed to these results.
2. Reasons Behind the Strong Performance
Steady growth in core businesses: The fishery segment maintained robust performance due to increased tuna catches and sales of high-value-added products. The food processing and distribution segment established a stable profit base, driven by the growth of the HMR market.
Securing new growth engines: Entry into the secondary battery materials business is considered a key growth driver brightening Dongwon’s future.
Transition to a holding company structure: The transition to a holding company structure to enhance group business efficiency and synergy is a positive signal for long-term competitiveness.
3. Future Outlook
Dongwon Industries shows a positive outlook based on its solid fundamentals and growth potential. In particular, growth in the secondary battery materials business is expected to contribute significantly to the company’s value. However, macroeconomic uncertainties and raw material price volatility remain risk factors.
4. Investor Action Plan
- Monitor secondary battery materials business growth: Keep track of new orders and sales growth.
- Risk management: Pay attention to changes in profitability due to exchange rate and raw material price fluctuations, and examine the company’s debt management strategy under rising interest rates.
- Analyze synergy effects: It’s crucial to verify whether synergy effects between group affiliates are actually materializing.