Hyosung Heavy Industries (298040) Q2 2024 earnings summary

Executive summary

• Sales revenue in 2Q 2024 reached KRW 1,193.8 billion, up 21.3% sequentially and 6.3% year-over-year, with operating profit at KRW 62.7 billion, an 11.6% increase from 1Q 2024 but a 26.8% decrease year-over-year.

• Net profit for 2Q 2024 was KRW 28.2 billion, up 12.1% from the previous quarter but down 9.6% year-over-year.

Financial highlights

• Gross profit margin declined to 13.3% in 2Q 2024 from 14.4% in 1Q 2024 and 15.7% in 2Q 2023.

• EBITDA for 2Q 2024 was KRW 80.8 billion, up 11.6% sequentially but down 26.8% year-over-year.

• Net debt decreased to KRW 1,151.5 billion, with a net debt to equity ratio of 91.7%, improving by 4.9 percentage points from March 2024.

• Cash flow from operations in 2Q 2024 was KRW 110.8 billion, a significant turnaround from negative flows in prior periods.

Outlook and guidance

• Overseas orders, especially in the US, Europe, and the Middle East, are continuously increasing, supporting future growth.

• Expansion of ultra-high voltage transformer capacity and new public project orders are expected to enhance profitability.