1. What Happened? H1 2025 Earnings Report Breakdown
Korea Steel Wire’s revenue for the first half of 2025 decreased compared to the same period last year. The sluggish performance of the steel division was the primary cause, while the fittings and valves division maintained relatively robust performance. Operating profit increased slightly year-over-year but fell short of market expectations. Net income turned to profit, but continuous improvement in profitability is necessary.
2. Why These Results? Background and Analysis
The steel division faces multiple challenges, including low-priced competition from China, a global economic slowdown, and rising raw material prices. Conversely, the fittings and valves division secured growth momentum by successfully entering future growth industries such as renewable energy, hydrogen, secondary batteries, and semiconductors. However, external uncertainties, such as the rising KRW/USD exchange rate and increasing volatility in raw material prices, continue to burden Korea Steel Wire.
3. What’s Next? Future Outlook and Investment Strategies
Korea Steel Wire is expected to pursue growth centered around its fittings and valves business. In particular, the expansion of the hydrogen, secondary battery, and semiconductor markets could serve as long-term growth drivers. However, the sluggish performance of the steel division and high debt-to-equity ratio pose investment risks. Whether the company can achieve earnings that exceed market expectations will determine the future direction of its stock price.
4. What Should Investors Do? Action Plan
- Focus on the Positives: Closely monitor the growth potential of the fittings and valves business and the performance of new market entries.
- Essential Risk Management: Managing risks related to the volatility of the steel division’s performance and macroeconomic uncertainties is crucial.
- Maintain a Long-Term Perspective: It is advisable to invest in Korea Steel Wire based on its long-term growth potential rather than being swayed by short-term stock price fluctuations.
What are Korea Steel Wire’s main businesses?
Korea Steel Wire’s main businesses are the manufacturing and sale of steel wire, steel products, fittings, and valves. The fittings and valves division is particularly focused on entering future growth industries such as hydrogen, secondary batteries, and semiconductors.
How did Korea Steel Wire perform in the first half of 2025?
While revenue decreased compared to the same period last year, operating profit increased slightly, and net income turned to profit. The fittings and valves division drove growth amidst the sluggish performance of the steel division.
What should investors be aware of when investing in Korea Steel Wire?
Investors should consider the volatility of the steel division’s performance, fluctuations in raw material prices, and the high debt-to-equity ratio as risk factors.