HMM (011200) Q4 2024 earnings summary

Executive summary

• Achieved consolidated operating income of KRW 3,513bn for FY2024, up KRW 2,928bn year-over-year; revenue reached KRW 11,700bn, up 39.3% YoY; net profit was KRW 3,781bn, up KRW 2,812bn YoY.

• Container segment operating income surged 754.3% YoY due to bullish market and geopolitical factors; bulk segment operating income declined 29.1% YoY on lower VLCC/MPV profitability and higher charter rates.

• COGS to sales ratio decreased as revenue outpaced COGS growth; fuel costs rose 14.9% YoY due to increased bunker consumption from ship detouring.

Financial highlights

• FY2024 revenue: KRW 11,700bn (+39.3% YoY); operating income: KRW 3,513bn (+500.7% YoY); net profit: KRW 3,781bn (+290.3% YoY).

• 4Q 2024 revenue: KRW 3,155bn; operating income: KRW 1,000bn; net profit: KRW 896bn.

• Assets at year-end: KRW 33,849bn (+31.6% YoY); equity: KRW 27,876bn (+30.0% YoY); liabilities: KRW 5,972bn (+39.8% YoY).

• Total borrowings as of Dec 31, 2024: KRW 4,377bn.

Outlook and guidance

• Container market faces increased supply-demand imbalances and ongoing uncertainty from new regulations and geopolitical conflicts.

• Dry bulk market expected to decline YoY due to China's economic slowdown and steel industry uncertainty.

• Tanker market outlook favorable, supported by potential OPEC+ production increases and limited newbuilding inflows.

• Strategic focus on increasing contract volumes, enhancing profitability with new vessels, and expanding green energy transport.