1. Hyundai Everdigm H1 2025 Earnings: What Happened?

Hyundai Everdigm reported sales of KRW 85.2 billion, operating profit of KRW 2.8 billion, and net income of KRW 0.3 billion for H1 2025. While sales slightly increased year-over-year, both operating and net income saw significant declines. The decline in profitability in Q2 despite increased sales compared to Q1 is particularly concerning.

2. Reasons for the Decline: Why These Results?

This decline in performance is attributed to a combination of factors, including the prolonged downturn in the domestic construction market, intensified competition in overseas markets, increased exchange rate volatility, and rising raw material prices. Rising cost of sales and increased selling, general, and administrative expenses are pressuring profitability. The decline in the vehicle segment was particularly noticeable.

3. Future Outlook and Investment Strategy: What Now?

The trend of declining profitability is likely to continue in the short term. Changes in the macroeconomic environment, overseas orders, and the performance of new businesses are expected to determine stock price movements. In the medium to long term, positive changes can be expected through diversification of overseas markets and strengthening technological competitiveness, but uncertainties still exist.

4. Investor Action Plan: What Should Savvy Investors Do?

  • » A cautious investment approach is needed as short-term profitability improvement is expected to be difficult.
  • » Closely monitor macroeconomic indicators, exchange rates, and raw material price fluctuations.
  • » Watch for potential positive momentum, such as the development of new overseas markets and increased exports of fire trucks.
  • » Continuous monitoring of the company’s strategic execution and market reactions is crucial.