1. Moorim Paper H1 2025 Performance: What Happened?
Moorim Paper reported consolidated revenue of KRW 619.28 billion (down 10.5% YoY), operating profit of KRW 14.97 billion (down 79.5% YoY), and net income of KRW 3.43 billion (down 90.3% YoY) for H1 2025. The substantial loss in the pulp segment was the primary driver of the overall decline.
2. Analyzing the Decline: Why These Results?
The pulp segment faced a double whammy of declining international pulp prices and weak demand, resulting in significant operating losses. While the paper segment improved profitability through cost reduction and a focus on high-margin products, it couldn’t offset the overall decline. Global economic slowdown also contributed to losses in the wholesale segment.
3. Moorim Paper’s Outlook: What’s Next?
Moorim Paper’s future performance hinges on the recovery of the pulp segment, the success of its new renewable energy ventures, effective management of exchange rate and interest rate volatility, and continued cost control measures. The resilient paper segment and investments in new businesses offer positive signals, but the uncertainty surrounding the pulp segment and high debt levels remain key risks.
4. Action Plan for Investors: What to Do?
- Monitor Pulp Prices and Supply Dynamics: Closely track relevant indicators to assess the potential recovery of the pulp segment.
- Watch New Business Growth: Pay close attention to the profitability and scalability of the renewable energy business.
- Assess Financial Health: Continuously monitor the company’s high debt-to-equity ratio and improvements in liquidity.
- Review Shareholder Return Policy: Stay informed about Moorim Paper’s policies regarding shareholder value enhancement.