1. HuM&C H1 2025 Performance: Analyzing the Decline

HuM&C reported revenue of KRW 13.45 billion in H1 2025, a 21.9% increase year-over-year but a 13.4% decrease compared to H1 2023. Both the glass and cosmetics segments experienced revenue declines, leading to significant drops in operating profit and net income. This is attributed to a combination of factors, including the global economic slowdown, decreased customer orders, and increased exchange rate volatility.

2. Hidden Opportunities: Glass Business and Vietnam Operations

Despite the disappointing results, there are reasons for optimism. The glass business, holding over 30% market share in the domestic glass container market, is expected to grow steadily alongside the pharmaceutical industry. Furthermore, the Vietnam facility, slated for commercial production in 2025, is projected to reduce production costs and serve as a springboard for expansion into Southeast Asian markets.

3. Investment Considerations: Capital Reduction and External Factors

Investors should consider the potential dilution of share value due to the 5:1 capital reduction. Additionally, external factors such as raw material prices, exchange rate fluctuations, and interest rate hikes require careful monitoring.

4. Investment Strategies: Short-Term vs. Long-Term

In the short term, market volatility is anticipated due to the poor performance and capital reduction. A conservative approach is advised. In the long term, the success of the Vietnam operations and the growth of the glass business could enhance investment appeal. New business ventures and R&D achievements are also noteworthy.