1. KOMERON H1 2025 Earnings: What Happened?
KOMERON’s H1 2025 earnings showed a decline in revenue, operating profit, and net income compared to the same period last year. Revenue decreased by 7.14% to 18.2 billion won, operating profit fell by 43.42% to 4.3 billion won, and net income dropped by 30.61% to 6.8 billion won.
2. What Caused the Earnings Decline?
The main factors contributing to this underperformance are the global economic slowdown and difficulties in the steel rolling business. Declining sales in the North American market for measuring tapes and a significant drop in steel rolling business revenue (-52.6% YoY) negatively impacted the overall results. Furthermore, an increase in selling, general, and administrative expenses (up 102.7% YoY) accelerated the decline in operating profit margin.
3. What is the Outlook for KOMERON?
KOMERON is expected to face challenges in achieving short-term earnings improvement amidst the difficult external environment. However, the steady demand and brand competitiveness of the measuring tape business, new investments and business diversification efforts, and a stable financial structure can be seen as positive factors. However, the continued global economic slowdown, the potential for further decline in the steel rolling business, and increased competition leading to pressure on profitability remain as risk factors.
4. What Should Investors Do?
The current investment recommendation for KOMERON is ‘Maintain a Hold Position and Exercise Caution’. Considering the short-term earnings decline and external environmental factors, it is advisable to observe the trend rather than actively purchasing shares. KOMERON’s future earnings rebound depends on maintaining growth in the measuring tape business, a turnaround in the steel rolling business, and the success of new business investments.