1. What Happened? NeoAuto’s H1 2025 Performance Analysis

NeoAuto recorded sales of KRW 119.3 billion (down 9.0% YoY) and operating profit of KRW 7.7 billion (down 1.7% YoY) in the first half of 2025. Decreased sales of large gears were a major factor, but the company minimized the decline in profit through improved cost of sales and SG&A efficiency.

2. Why These Results? The Reasons Behind the Sluggish Performance

NeoAuto’s sluggish performance is a result of a combination of external factors such as a slowdown in the automobile market, high interest rates and exchange rate fluctuations, rising raw material prices, and internal factors such as declining sales of large gears. In particular, intensifying competition in the electric vehicle market could weigh on NeoAuto’s short-term growth.

3. What’s Next? NeoAuto’s Future Outlook

NeoAuto has positive factors such as increased orders for next-generation eco-friendly car parts from Hyundai Motor Group, technology development, and securing patents. However, high dependence on Hyundai, intensifying competition in the EV market, and raw material price volatility remain risk factors. Therefore, NeoAuto’s future hinges on the growth of the green car market and the success of its customer diversification strategy.

  • Positive Factors: Increased orders for eco-friendly car parts, improved financial soundness
  • Negative Factors: Uncertainty in the finished car market, increasing customer dependency

4. What Should Investors Do? Investment Strategy Recommendations

In the short term, a cautious investment approach is necessary, closely monitoring trends in related industries and the EV market. In the mid-to-long term, we recommend a hold approach, monitoring factors such as increased orders for eco-friendly car parts, new technology development, and customer diversification efforts.