Hankook Tire & Technology Co Ltd (161390) Q2 2024 earnings summary

Executive summary

• Achieved revenue of KRW 2.318 trillion and operating profit of KRW 420 billion in 2Q 2024, with an operating profit margin (OPM) of 18.1% year-over-year and 5.3% quarter-over-quarter growth in operating profit.

• Achieved consolidated sales of KRW 4,445.2 billion and operating profit of KRW 818.8 billion for H1 2024, with an operating margin of 18.4%.

• Net income for H1 2024 was KRW 683.6 billion, and pre-tax income was KRW 908.9 billion.

• Tire product sales reached KRW 4,345.7 billion, maintaining a domestic market share of 30–40%.

• High profitability driven by improved product mix, stable pricing, reduced freight costs, and lower raw material prices.

Financial highlights

• 2Q 2024 revenue up 2.4% YoY and 9.0% QoQ; operating profit up 69.2% YoY and 5.3% QoQ.

• Gross profit margin improved to 36.0% in 2Q 2024 from 28.5% in 2Q 2023.

• EBITDA for 2Q 2024 reached KRW 548.4 billion, up 46.1% YoY and 5.1% QoQ.

• H1 2024 consolidated sales: KRW 4,445.2 billion (YoY increase).

• 1H 2024 revenue increased 1.8% YoY; operating profit surged 86.4% YoY to KRW 818.8 billion.

Outlook and guidance

• Targeting continued revenue growth and maintaining double-digit OPM for 2024.

• Aiming to increase high-inch tire sales ratio within PCLT to 49% and EV tire sales ratio within PCLT OE to 25% by year-end.

• Plans to continue aggressive R&D and investment, strengthen brand power, and enhance customer service.

• Aims to maintain growth momentum through operational excellence and innovation.