HL Mando (A204320) Q3 2024 earnings summary

Executive summary

• Achieved record-high 3Q sales of KRW 2,171.7 bn, up 2.5% year-over-year, with global 2024 3Q YTD sales at ₩6,426.4 billion; Korea accounted for 42.1%, China 25.5%, US 17.7%, India 10.6%, and other regions 19.2%.

• Net income attributable to controlling interests was ₩87.4 billion, with consolidated net income at ₩108.5 billion for the period; 3Q net profit was negative at KRW -49.2 bn due to valuation loss on financial assets.

• Secured KRW 3.3 tn in new business wins, reaching 98.4% of the FY 2024 target.

• Expanded business with major OEMs in China, India, and North America, and joined SDVerse as the exclusive chassis solutions provider.

• Continued diversification of customer base and expansion of global production and R&D sites, focusing on advanced chassis, ADAS, and electrification technologies.

Financial highlights

• Sales increased to KRW 2,171.7 bn in 3Q, up 2.5% year-over-year and 1.1% sequentially; 2024 3Q YTD revenue was ₩6,426.4 billion, down from ₩8,393.1 billion prior year.

• Operating profit was KRW 82.5 bn in 3Q, flat year-over-year but down 7.1 bn sequentially; YTD operating income was ₩247.7 billion.

• Net income turned negative at KRW -49.2 bn in 3Q, while YTD net income attributable to controlling interests was ₩87.4 billion.

• EPS for the period was ₩1,863, down from ₩2,890 year-over-year.

• Gross margin for the period was approximately 14.2%.

Outlook and guidance

• New business wins in 3Q24 reached KRW 3.3 tn, nearly meeting the full-year target.

• Prioritizing R&D in electrification, autonomous driving, and software-defined vehicle technologies.

• Plans to maintain a dividend payout ratio of around 20% of controlling shareholder net income, with flexibility for additional shareholder returns.

• Continued focus on global customer diversification and expansion in emerging markets.

• Continued focus on expanding product offerings and regional diversification.