Samsung Electro-Mechanics (A009150) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached KRW 2,580.1 billion, up 16% YoY but down 2% QoQ, with operating profit at KRW 208.1 billion, up 15% QoQ and 2% YoY.

• Net profit was KRW 172.4 billion, down 6% QoQ but up 53% YoY; total assets increased 5% QoQ to KRW 12,744.5 billion.

Financial highlights

• Pre-tax profit was KRW 231.1 billion, up 5% QoQ and 59% YoY.

• Gross profit margin improved to 20.1% from 18.1% in Q1 2024, but down from 21.7% in Q2 2023.

• Cash balance increased 17% QoQ and 49% YoY to KRW 2,355.4 billion.

• Operating profit margin improved to 8.1% from 6.9% in Q1 2024.

Outlook and guidance

• Q3 is expected to see seasonal demand growth in components, especially with new smartphone launches and continued industrial and automotive demand.

• MLCC and package substrate revenue anticipated to increase in Q3, driven by AI server, PC, and automotive applications.

• Focus on expanding high-end product lineups and increasing supply to meet AI and automotive market needs.

• Optics & Communication expects more adoption of high-spec camera modules in new flagship smartphones.