1. Histeel’s H1 2025 Performance: What Happened?

Histeel reported consolidated revenue of KRW 129.4 billion (up 2.5% YoY), operating profit of KRW 2.24 billion (up 308.5% YoY, returning to profitability), and net income of KRW 390 million (returning to profitability) for H1 2025. However, Q2 preliminary results show revenue of KRW 58.8 billion, operating profit of KRW 1.7 billion, and a net loss of KRW 500 million, indicating a decline in sales and a return to losses compared to Q1.

2. Analyzing the Profitability and Decline: Why These Results?

  • ✅ Positive Factors: Increased overseas project orders, favorable exchange rate effects, business diversification (Haman plant operation, heat treatment business), increased R&D investment.
  • ⚠️ Negative Factors: Q2 earnings decline (decreased sales, net loss), macroeconomic uncertainty (interest rate hikes, oil price volatility, protectionism), uncertainty regarding the U.S. Department of Commerce ruling, low operating rate of the Haman plant (43.3%).

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

While there’s a possibility of short-term stock price decline due to the weak Q2 results, the long-term outlook should consider positive factors such as overseas market performance, high-value-added product development, and business diversification. However, careful analysis is needed to determine whether the Q2 decline is temporary or structural, along with monitoring macroeconomic changes and the company’s response strategies.

4. Action Plan for Investors

  • Analyze the cause of the Q2 earnings decline (temporary vs. structural).
  • Monitor overseas market order pipelines and trends.
  • Keep an eye on macroeconomic changes (exchange rates, oil prices, interest rates, international trade policies).
  • Evaluate efforts to secure growth engines such as high-value-added product development and improvement of the Haman plant’s operating rate.