Enchem (348370) Q2 2024 earnings summary

Executive summary

• Specializes in manufacturing and selling electrolytes and additives for secondary batteries, with global operations and recent expansion into NMP recycling and joint ventures for solvent and lithium salt production.

• Achieved rapid growth, with sales rising from 37 million KRW in 2012 to 424.7 billion KRW in 2023, and continued global expansion with new subsidiaries in Canada and France in 2024.

• Holds a BB+ credit rating as of June 2024, reflecting recognized but somewhat unstable creditworthiness amid market uncertainties.

Financial highlights

• Consolidated revenue for H1 2024 was 186.5 billion KRW, down from 424.7 billion KRW in H1 2023.

• Operating loss for H1 2024 was 11.2 billion KRW, compared to an operating profit of 3.0 billion KRW in H1 2023.

• Net loss attributable to controlling interests was 309.5 billion KRW for H1 2024, versus a net loss of 50.1 billion KRW in H1 2023.

• Basic EPS for H1 2024 was -16,885 KRW, compared to -3,115 KRW in H1 2023.

• Cash and cash equivalents at June 30, 2024, were 55.9 billion KRW, up from 44.6 billion KRW at year-end 2023.

Outlook and guidance

• Expects continued growth in the global electrolyte market, driven by electric vehicle and energy storage demand.

• Plans further expansion of overseas production capacity and entry into NMP recycling to secure raw material supply and cost competitiveness.