HL Mando (A204320) Q2 2024 earnings summary

Executive summary

• Achieved sales of KRW 2,147.4 bn in Q2 2024, up 2.9% year-over-year, with operating profit of KRW 89.6 bn (OPM 4.2%).

• Achieved consolidated revenue of 4,254.7 billion KRW for H1 2024, with net income attributable to controlling interests at 144.1 billion KRW and total net income at 157.6 billion KRW.

• Net profit declined to KRW 11.9 bn in Q2 2024, impacted by higher corporate tax expenses from changes in subsidiary dividend policies in China.

• Maintained a strong global presence with 23 consolidated subsidiaries and diversified customer base across major OEMs in Korea, North America, Europe, China, and India.

• Continued focus on R&D and innovation, with 230.1 billion KRW invested in H1 2024, representing 5.41% of sales.

Financial highlights

• Sales increased 2.9% year-over-year and 1.9% sequentially from Q1 2024.

• Operating profit rose to KRW 89.6 bn in Q2 2024, up 16.4% year-over-year and 18.5% quarter-over-quarter.

• Net income attributable to controlling interests was 144.1 billion KRW in H1 2024, up from 135.6 billion KRW in H1 2023.

• EPS for H1 2024 was 3,070 KRW, up from 2,890 KRW in H1 2023.

• Operating margin improved to 4.2% from 3.7% a year ago.

Outlook and guidance

• Positioned to outperform the market with a projected CAGR of 10% from 2023 to 2028, compared to the market's 1.3%.

• Management targets growth in global markets, especially in EV and ADAS segments, leveraging strong R&D and global manufacturing footprint.

• Focus on expanding partnerships with SDV and EV leaders to drive future growth.

• Dividend policy aims for payout of around 20% of controlling interest net income, with flexibility for additional shareholder returns.