1. HLB Global H1 2025 Earnings: What Happened?
HLB Global reported revenue of KRW 27 billion, an operating loss of KRW 1.6 billion, and a net loss of KRW 4.2 billion in H1 2025. Revenue decreased by 72.5% year-over-year, and profitability worsened.
2. Analyzing the Decline: Why These Results?
- Media Commerce Downturn: Revenue from the core media commerce business declined significantly year-over-year. The company appears to have struggled with increased competition and shifting consumer trends.
- Resource Development Discontinuation: The discontinuation of the resource development (aggregate) business due to poor profitability created a short-term revenue gap.
- Limited Subsidiary Contribution: Subsidiaries in bio, food/beverage, and cosmetics contributed minimally to overall performance improvement.
3. Key Investor Checkpoints: What’s Next?
- Core Business Recovery Potential: Focus on HLB Global’s turnaround strategy for its media commerce business and its plans to enhance competitiveness.
- Bio Business Milestones: The timing of R&D milestones in the bio business, considered a long-term growth driver, is crucial.
- Financial Health and Risk Management: Continuously monitor financial risks related to convertible bonds and ongoing litigation.
- Macroeconomic Impact: Consider the influence of macroeconomic factors such as exchange rates, interest rates, and raw material prices.
4. Investment Strategy: What Should Investors Do?
Investors considering HLB Global should carefully analyze the potential for core business recovery, bio business milestones, financial risks, and the macroeconomic environment. A long-term investment strategy is recommended rather than focusing on short-term performance improvements.