Hanjin Kal (A180640) Q3 2024 earnings summary

Executive summary

• Consolidated revenue for Q3 2024 was 816 billion KRW, up 6.9% year-over-year and 16.2% sequentially from Q2 2024.

• Operating income rose to 139 billion KRW, a 24.1% increase year-over-year.

• Net income for Q3 2024 was 1,937 billion KRW, down 12.4% year-over-year but up 40.4% sequentially.

• The group operates as a holding company with core revenue from subsidiary dividends, brand royalties, and real estate leasing, with major subsidiaries in aviation, logistics, and hospitality sectors.

• Key subsidiaries include a leading airline (passenger, cargo, aerospace), a logistics/tax parcel company, and hotel/real estate businesses.

Financial highlights

• Operating margin improved to 17.0% in Q3 2024, up 2.4 percentage points year-over-year.

• EBITDA for Q3 2024 was 196 billion KRW.

• Total assets increased to 41,603 billion KRW, up 9.9% year-over-year.

• Debt ratio decreased to 27.3%, down 5.3 percentage points year-over-year.

• Cash and cash equivalents at quarter-end were 1,318 billion KRW, up 199.5% year-over-year.

• Consolidated revenue for the nine months ended September 2024 was ₩221.6 billion, down from ₩275.7 billion year-over-year.

• Operating profit was ₩41.3 billion, nearly flat year-over-year (₩42.8 billion in 2023).

• Net income attributable to owners was ₩425.8 billion, up from ₩385.1 billion year-over-year.

• Basic EPS (common stock) was ₩6,369, up from ₩5,756 year-over-year.

• Cash and cash equivalents at period-end were ₩131.8 billion, up from ₩43.9 billion at the previous year-end.

Outlook and guidance

• Management notes that future performance is subject to market uncertainties and may differ from current forecasts.

• The airline expects continued demand strength in international passenger and e-commerce cargo, but notes persistent macroeconomic and geopolitical risks.

• The logistics subsidiary anticipates steady growth in e-commerce and global logistics, with ongoing investment in automation and digital platforms.

• The group maintains a dividend payout policy targeting around 50% of standalone net income (excluding one-offs) for FY2024–2026.