HMM (011200) Q1 2025 earnings summary

Executive summary

• Revenue rose 22.5% year-over-year to KRW 2,855bn in 1Q 2025, with operating income up 50.8% to KRW 614bn and net profit up 52.5% to KRW 740bn.

• Container segment drove growth, with operating income up 65.2% YoY, offsetting a 33.8% YoY decline in bulk segment profitability.

• Cost of goods sold to sales ratio improved to 73.7% from 78.4% YoY, despite higher port/cargo handling costs due to increased volumes and exchange rates.

Financial highlights

• Operating margin increased to 21.5% from 17.5% YoY, a 4.0 percentage point improvement.

• Assets grew 1.2% YoY to KRW 34,269bn, liabilities rose 5.3% to KRW 6,313bn, and equity was stable at KRW 27,956bn.

• Debt to equity ratio stood at 22.6% at quarter-end.

Outlook and guidance

• Market uncertainty heightened by US-China reciprocal tariffs and global recession concerns; container and dry bulk markets expected to remain soft.

• Strategies include alliance-level responses, maximizing COA cargo revenue, and targeting high-margin markets with flexible vessel deployment.

• Tanker market expected to remain flat amid solid oil demand but seasonal and tariff-related uncertainties persist.