1. What Happened? H1 2025 Earnings Report Breakdown

Korea Steel Wire’s revenue for the first half of 2025 decreased compared to the same period last year. The sluggish performance of the steel division was the primary cause, while the fittings and valves division maintained relatively robust performance. Operating profit increased slightly year-over-year but fell short of market expectations. Net income turned to profit, but continuous improvement in profitability is necessary.

2. Why These Results? Background and Analysis

The steel division faces multiple challenges, including low-priced competition from China, a global economic slowdown, and rising raw material prices. Conversely, the fittings and valves division secured growth momentum by successfully entering future growth industries such as renewable energy, hydrogen, secondary batteries, and semiconductors. However, external uncertainties, such as the rising KRW/USD exchange rate and increasing volatility in raw material prices, continue to burden Korea Steel Wire.

3. What’s Next? Future Outlook and Investment Strategies

Korea Steel Wire is expected to pursue growth centered around its fittings and valves business. In particular, the expansion of the hydrogen, secondary battery, and semiconductor markets could serve as long-term growth drivers. However, the sluggish performance of the steel division and high debt-to-equity ratio pose investment risks. Whether the company can achieve earnings that exceed market expectations will determine the future direction of its stock price.

4. What Should Investors Do? Action Plan

  • Focus on the Positives: Closely monitor the growth potential of the fittings and valves business and the performance of new market entries.
  • Essential Risk Management: Managing risks related to the volatility of the steel division’s performance and macroeconomic uncertainties is crucial.
  • Maintain a Long-Term Perspective: It is advisable to invest in Korea Steel Wire based on its long-term growth potential rather than being swayed by short-term stock price fluctuations.