1. PHA Corp’s H1 2025 Earnings Analysis

PHA reported sales of KRW 316.5 billion, operating profit of KRW 13.5 billion, and net income of KRW 6.3 billion for H1 2025. While sales grew year-over-year, both operating and net income decreased.

2. What Caused the Decline in Profitability?

Rising raw material prices, exchange rate fluctuations, and intensifying competition in the Chinese market are identified as the main causes for the decline in profitability. The increased competition in China, in particular, negatively impacted operating profit. Furthermore, an increase in selling, general, and administrative expenses also contributed to the decline.

3. Positive Aspects Despite the Decline?

PHA’s solid financial structure and continued R&D investment in future technologies are positive factors. High capital ratios and sufficient cash and cash equivalents can act as a buffer against short-term uncertainties. Furthermore, investments in developing future mobility technologies, such as electrification and autonomous driving, are expected to contribute to securing long-term growth momentum.

4. Action Plan for Investors

Investors considering PHA should pay close attention to the company’s strategies for improving profitability and its ability to secure growth momentum in regions outside of China. The progress of future mobility technology development is also a key investment point.