HD Hyundai Electric (267260) Q2 2024 earnings summary

Executive summary

• Achieved record-high quarterly revenue and operating profit, driven by global power grid upcycle, strong order backlog, and export sales accounting for 70% of H1 2024 revenue.

• Operating income for H1 2024 was 338.8 billion KRW, with net income attributable to owners at 255.5 billion KRW and basic EPS of 7,097 KRW.

• Order intake decreased due to a high base in the previous quarter, but backlog continued to grow, reaching 7,090.2 billion KRW as of June 30, 2024.

Financial highlights

• 2Q24 sales reached KRW 916.9 bn, up 14.5% QoQ and 42.7% YoY; H1 2024 revenue was 1,717.9 billion KRW.

• Operating profit was KRW 210.1 bn in 2Q24, up 63.0% QoQ and 257.1% YoY; OP margin rose to 22.9%.

• Net profit before taxes was KRW 161.2 bn in 2Q24, up 72.6% QoQ and 331.0% YoY.

• Total assets increased to 3,319.0 billion KRW, and equity rose to 1,292.4 billion KRW as of June 30, 2024.

• Order intake was USD 880 mil in 2Q24, down 38.8% QoQ and 28.6% YoY; backlog increased to USD 5,252 mil.

Outlook and guidance

• Expanding into renewable energy, ESS, and offshore wind, leveraging strategic partnerships and acquisitions.

• Plans to grow in overseas ESS markets and offshore wind, focusing on total energy solutions.

• Extended delivery periods in North America prompt utilities to advance orders and diversify suppliers.

• Middle East focus on market diversification and package orders for large transformers and circuit breakers.

• Marine segment expects stable demand from LNG vessel orders and environmental regulations.