1. What Happened?
Hancom With announced its Q2 2025 preliminary earnings on August 14, 2025. While revenue slightly increased to ₩186.9 billion compared to the previous quarter, operating profit and net profit decreased to ₩500 million and ₩4.1 billion, respectively. Year-over-year, revenue decreased, operating profit increased, and net profit turned to black.
2. Why These Results?
The main cause of the revenue decline is the sluggish gold trading business. Conversely, the security solutions sector showed growth. Operating profit increased year-over-year due to growth in the security solutions sector and improved margins in the gold trading business, but decreased significantly compared to the previous quarter. Net profit turned to black due to non-operating factors such as investment gains from affiliated companies, but decreased when Q2 preliminary results were reflected. Furthermore, the increased debt ratio due to increased borrowing raises concerns about financial soundness.
3. What’s Next?
Hancom With is actively investing in promising future technologies such as PQC, AI-based security solutions, and blockchain, securing long-term growth potential. However, high dependence on the gold trading business and the increasing debt ratio are risk factors. The commercialization and market performance of PQC and AI technologies, the development of new growth engines besides gold trading, and the management of financial soundness will be key variables in the future.
4. What Should Investors Do?
- While the company’s efforts to secure future growth engines and its technological capabilities are positive, investment should be approached from a mid- to long-term perspective, considering the short-term sluggish performance and increased financial burden.
- Investors should continuously monitor debt ratio management, business portfolio diversification, and performance improvement in the security software business.
- Compare and analyze future official earnings with market expectations to inform investment decisions.
What are Hancom With’s main businesses?
Hancom With engages in various businesses, including security software, blockchain, and gold trading. The company is particularly focused on investing in the development of Post-Quantum Cryptography (PQC) and AI-based biometric authentication technology.
How did Hancom With perform in H1 2025?
Hancom With recorded revenue of ₩186.9 billion, operating profit of ₩500 million, and net profit of ₩4.1 billion. Year-over-year, revenue decreased, operating profit increased, and net profit turned to black. Quarter-over-quarter, revenue slightly increased, while both operating profit and net profit decreased.
What should investors consider when investing in Hancom With?
Investors should be aware of the company’s high dependence on the gold trading business and its increasing debt ratio. It’s also important to monitor the commercialization and market performance of PQC and AI technologies, the development of new growth engines, and the management of financial soundness.