Hyosung Heavy Industries (298040) Q3 2024 earnings summary

Executive summary

• Achieved strong financial performance in 3Q 2024, with significant improvements in profitability and order intake across core divisions.

• Revenue for the first nine months of 2024 was ₩3,323.5 billion, with operating income of ₩230.2 billion and net income attributable to owners of ₩131.6 billion, reflecting stable growth in both heavy industry and construction segments.

• Growth driven by increased global sales, especially in the US, Europe, Middle East, and Korea, and robust order backlog.

• R&D investment reached ₩28.7 billion (0.86% of sales), focusing on eco-friendly and high-efficiency products, with several new patents registered.

Financial highlights

• Sales revenue reached KRW 1,145.2 billion in 3Q 2024, up 10.2% year-over-year but down 4.1% sequentially.

• Operating profit rose to KRW 111.4 billion in 3Q 2024, up 77.7% quarter-over-quarter and 17.8% year-over-year.

• Net profit increased to KRW 72.4 billion in 3Q 2024, up 156.7% sequentially and 28.4% year-over-year.

• Consolidated revenue for Q1–Q3 2024 was ₩3,323.5 billion, with operating profit at ₩230.2 billion and net profit at ₩131.6 billion.

• Gross profit margin improved to 18.3% in 3Q 2024, while gross margin for Q1–Q3 was 15.4%.

Outlook and guidance

• Continued focus on expanding global market presence and enhancing profitability through high-margin projects.

• The company expects continued growth in global power infrastructure demand, driven by carbon neutrality, digitalization, and renewable energy trends.

• Ongoing risk management and cost control measures to address market volatility.

• Ongoing investments in production capacity and R&D are aimed at strengthening competitiveness in eco-friendly and digital solutions.