1. Nexen Tire IR: What Was Discussed?
Nexen Tire held an IR session on September 18, 2025, aiming to enhance investor understanding of the company’s R&D status. Key R&D infrastructure and achievements were presented, with a particular focus on EV-specific tires and eco-friendly material development.
2. Why Pay Attention to Nexen Tire?
- Solid Growth: As of H1 2025, Nexen Tire recorded improved performance compared to the same period of the previous year, with sales of KRW 1.5759 trillion and operating profit of KRW 83.3 billion (operating profit margin of 5.29%).
- Securing Future Growth Drivers: The company has established a foundation for sustainable growth through the expansion of its global sales network, stabilization of its European plant operations, and increased supply to premium car manufacturers.
- Increased R&D Investment: Nexen Tire is focusing on securing future competitiveness through continuous R&D investment at approximately 2.9% of sales, particularly in the development of EV-specific tires and eco-friendly materials.
- Stable Financial Structure: The company maintains a stable capital ratio with a net debt-to-equity ratio of 45.19%.
3. Key Investment Takeaways
Positive Factors:
- Expected benefits from the growth of the EV and eco-friendly tire market
- Market expansion based on a global sales network and European production base
- Strengthened technological competitiveness through continuous R&D investment
Risk Factors:
- Continued uncertainty regarding US anti-dumping duties
- Possibility of deteriorated export profitability due to exchange rate fluctuations
- Increased burden of raw material price increases and logistics costs
- Intensified competition in technology development and new product launches compared to competitors
Investment Action Plan: Carefully review the IR presentation and continuously monitor changes in the macroeconomic environment and the company’s performance trends when making investment decisions.