Hyundai Mobis (A012330) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue declined, with figures reported as KRW 14.0 trillion (down 1.6% YoY) and ₩42,526,339 million (down 4.6% YoY), mainly due to electrification sales drop and battery cell price decreases.

• Operating profit increased, reported as KRW 909 billion (up 31.6% YoY) and ₩2,087,323 million (up 17.8% YoY), driven by strong A/S parts demand and profitability improvements.

• A/S business sales rose, with KRW 3.0 trillion (up 10.4% YoY) and ₩8,956,739 million (up 10.6% YoY), supported by global demand and regional price adjustments.

• Non-captive orders reached USD 2.38 billion (26% of 2024 target), with delays in major EV projects impacting order performance.

• Domestic sales declined 14.2% due to lower EV demand, while overseas sales increased 6.6% on service expansion and FX effects.

Financial highlights

• Gross profit for 3Q24 was KRW 2,303 billion, up 30.5% YoY.

• Net profit for 3Q24 was reported as KRW 921 billion (down 7.7% YoY) and ₩2,781,272 million.

• Operating margin improved to 6.5% in 3Q24 from 4.9% in 3Q23.

• Electrification sales dropped 42.0% YoY to KRW 1,579 billion, mainly due to battery cell price and quantity decreases, and accounting changes.

• Core parts sales increased 11.7% YoY to KRW 3,084 billion, reflecting a favorable product mix.

Outlook and guidance

• Major EV project delays expected to push significant order growth into 2025.

• The company expects continued global economic uncertainty and subdued automotive demand, especially for EVs, but anticipates long-term growth in electrification and mobility solutions.

• CEO Investor Day scheduled for November 19, 2024, to announce long-term value enhancement plans and new shareholder return policy.

• Plans to strengthen global OEM partnerships and diversify customer base beyond Hyundai/Kia.

• Ongoing investments in R&D, production capacity, and digital transformation.