Korea Stock Market Insights

Tag: Financial Assets

  • Hyosung ONB Q3 2025 Earnings Analysis: Sharp Decline in Net Profit Due to Financial Asset Valuation Losses, What’s the Investment Strategy?



    Hyosung ONB Q3 2025 Earnings Analysis: Sharp Decline in Net Profit Due to Financial Asset Valuation Losses, What's the Investment Strategy? 대표 차트 이미지






    1. What Happened?: Q2 Earnings Shock, What’s the Cause?

    Hyosung ONB’s Q2 2025 earnings recorded a significant decline year-on-year, with sales of KRW 2.9 billion, operating profit of KRW 200 million, and a net loss of KRW 600 million. The main cause of the sharp drop in earnings, especially compared to Q1, was the valuation loss on financial assets.

    2. Why Did This Happen?: Double Whammy of Financial Asset Valuation Losses and Business Slump

    • Financial Asset Valuation Losses: The decline in the value of the investment portfolio directly impacted earnings.
    • Business Slump: The sharp drop in sales at subsidiary HYOSUNG ONB (PVT) LTD (-39.5%) and the decline in domestic composted organic fertilizer sales (-13.4%) also contributed to the earnings deterioration.

    3. What’s Next?: Positive Factors and Risks Amidst Uncertainty

    Hyosung ONB has positive factors such as the eco-friendly agricultural trend and government policy support, but whether the financial asset valuation losses will recover and whether operating profit will improve after Q3 will be key variables in future stock price movements. Volatility in raw material prices and exchange rates can also act as risk factors.

    4. What Should Investors Do?: Focus on Risk Management and Fundamental Analysis

    • Risk Management: Closely monitor the valuation trend of financial assets and strengthen risk management measures such as investment portfolio diversification.
    • Fundamental Analysis: Continuously analyze changes in fundamentals, such as strengthening core business competitiveness and improving the performance of overseas subsidiaries.
    • Information Acquisition: Consistently acquire information necessary for investment decisions through corporate disclosures and market analysis data.


    Hyosung ONB Investment, Solve Your Questions with FAQs!

    Q: What caused the sharp decline in Hyosung ONB’s Q2 earnings?

    A: The main cause was the valuation loss on financial assets. The decline in the value of the investment portfolio directly impacted earnings.

    Q: What is Hyosung ONB’s main business?

    A: Their main business is manufacturing and selling organic and byproduct fertilizers. They operate 5 domestic factories and a subsidiary in Sri Lanka. ‘Mixed oil cake (pellet)’ accounts for the largest portion of sales.

    Q: What should investors be aware of when investing in Hyosung ONB?

    A: Investors should pay close attention to the recovery of financial asset valuation losses, improvement in operating profit after Q3, and volatility in raw material prices and exchange rates. Risk management, such as investment portfolio diversification, is also important.









    Hyosung ONB Q3 2025 Earnings Analysis: Sharp Decline in Net Profit Due to Financial Asset Valuation Losses, What's the Investment Strategy? 관련 이미지
    Hyosung ONB Q3 2025 Earnings Analysis: Sharp Decline in Net Profit Due to Financial Asset Valuation Losses, What's the Investment Strategy? 관련 이미지




  • Kidadlistudio H1 2025 Earnings Analysis: Return to Profitability Driven by Webtoon Growth, But MD & Video Businesses Remain Sluggish

    1. Kidadlistudio H1 2025 Performance: What Happened?

    Kidadlistudio surpassed ₩100 billion in consolidated revenue in the first half of 2025, achieving a return to profitability. The webtoon business maintained strong growth, recording ₩82.7 billion in revenue, driven by increased overseas sales. Operating profit reached ₩2.39 billion, and net income was ₩2.56 billion, marking a significant improvement in profitability.

    2. Drivers of Performance Change: Why These Results?

    The consistent growth of the webtoon business and cost optimization efforts are considered the primary drivers of the return to profitability. However, the MD business (₩10.8 billion) and video business (₩3.7 billion) continued to struggle, with declining revenue compared to the same period last year. Furthermore, a significant increase in financial assets (₩51 billion) has also increased investment risk.

    3. Future Outlook and Investment Strategy: What’s Next?

    While Kidadlistudio has entered a positive recovery phase, challenges remain, including balancing the business portfolio, managing investment risk, and ensuring consistent management strategy. Strengthening the competitiveness of the core webtoon business and improving the profitability of the sluggish business segments are crucial tasks. A flexible overseas business strategy considering macroeconomic volatility is also essential.

    4. Action Plan for Investors: What Should Investors Do?

    • Focus on core business (webtoon) competitiveness strengthening and IP acquisition.
    • Monitor profitability improvement strategies for MD and video businesses.
    • Review the status of financial asset investment risk management.
    • Observe changes in management strategy following management changes.
    • Continuously monitor changes in corporate fundamentals through future disclosures and earnings announcements.

    Frequently Asked Questions

    What was Kidadlistudio’s core business in H1 2025?

    The core business for Kidadlistudio in the first half of 2025 was the webtoon business, which drove overall performance improvement with ₩82.7 billion in revenue, fueled by increased overseas sales.

    What are the current challenges facing Kidadlistudio?

    Kidadlistudio’s current challenges include sluggish MD and video businesses, increased investment risk from financial assets, and uncertainty due to management changes.

    What should investors consider when investing in Kidadlistudio?

    Investors should consider core business competitiveness, profitability improvement strategies for struggling businesses, financial asset risk management status, management strategy changes due to management turnover, and macroeconomic volatility.