HD Hyundai Marine Engine (071970) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was 146,452 million KRW, up from 96,793 million KRW in H1 2023, driven by increased demand in the shipbuilding and marine engine sector.

• Operating profit for H1 2024 reached 15,252 million KRW, compared to 5,109 million KRW in H1 2023.

• Net income for H1 2024 was 16,089 million KRW, up from 5,869 million KRW in H1 2023.

• The company completed a major ownership change, with HD Korea Shipbuilding & Offshore Engineering becoming the largest shareholder as of July 2024.

Financial highlights

• Gross margin improved, with gross profit at 64,100 million KRW for H1 2024.

• Basic EPS for H1 2024 was 563 KRW, up from 206 KRW in H1 2023.

• Cash and cash equivalents increased to 46,515 million KRW at June 2024, from 33,896 million KRW at December 2023.

• Total assets at June 2024 were 472,834 million KRW, with equity of 238,318 million KRW.

Outlook and guidance

• The company expects continued stable demand for eco-friendly marine engines, supported by global shipbuilding trends and environmental regulations.

• No major new capital investments are planned, but ongoing R&D in green technologies is emphasized.