1. What Happened? Almex H1 2025 Earnings Analysis
Almex reported sales of KRW 48.4 billion and operating profit of KRW 2.7 billion in its H1 2025 report. These figures represent a 12.8% and 35% increase year-over-year, respectively, and also show improvement compared to Q1. However, the consolidated net loss continued at KRW 0.4 billion, primarily attributed to the poor performance of its subsidiary, AR Aluminum. Standalone financials show a KRW 3.161 billion profit.
2. Why These Results? Background and Cause Analysis
Almex’s performance is closely linked to the ‘Chasm’ phenomenon in the EV market. The slowdown in EV market growth directly impacted Almex’s sales decline and profitability deterioration. Additionally, the low operating rates of Almex lines 2 and 5, and AR Aluminum, along with exchange rate volatility, also burdened performance.
3. What’s Next? Future Outlook and Opportunities
In the long term, the recovery of the EV market and Almex’s partnerships with global automakers are positive factors. Collaborations with Volkswagen, Audi, Porsche, and GM support Almex’s technological prowess and reliability. Continuous R&D investment is also expected to contribute to strengthening future competitiveness. However, the continuing ‘Chasm’ phenomenon, raw material price volatility, and intensifying competition remain risk factors.
4. What Should Investors Do? Investment Strategies and Key Points
- • Monitor the timing of the EV market recovery and changes in Almex’s market share.
- • Analyze subsidiary performance improvement and its impact on consolidated earnings.
- • Pay attention to efforts to improve production capacity utilization and efficiency.
- • Check the exchange rate volatility hedging strategy.
- • Identify efforts to expand new orders and partnerships.
Almex has growth potential, but a cautious investment approach is necessary considering the current market conditions and internal challenges.