1. POSCO Holdings H1 2025 Performance: Key Highlights
POSCO Holdings reported revenue of KRW 175.555 trillion for H1 2025, a 4% decrease year-over-year. Operating profit fell 12% to KRW 6.071 trillion, and net profit plummeted by 80% to KRW 838 billion, missing market expectations.
2. Analyzing the Downturn: Steel vs. Battery Materials
The decline in profitability in the steel sector is attributed to weakening demand and falling prices, driven by the global economic slowdown, geopolitical risks, and China’s economic downturn. Conversely, the battery materials business shows continuous investment and growth potential, although concerns remain about intensifying market competition and potential growth slowdown.
3. Investment Strategy: Navigating Opportunities and Risks
POSCO Holdings is securing future growth engines through its battery materials business, but investors must consider uncertainties in the steel sector and macroeconomic variables. A prudent approach is necessary, focusing on long-term growth potential while being mindful of short-term market volatility. Positive factors include strengthened ESG management, investment in technological innovation, and a stable financial structure.
4. Action Plan for Investors: Careful Observation and Analysis
- Monitor steel market conditions and battery materials market trends: Stay informed and respond quickly to market changes through continuous information gathering.
- Review POSCO Holdings’ business strategies and technology development performance: Continuously assess the growth potential and competitiveness of the battery materials business.
- Manage Risks: Adjust your investment portfolio considering potential risks such as global economic uncertainty and increased market competition.