Hankook Tire & Technology Co Ltd (161390) Q3 2024 earnings summary

Executive summary

• Achieved consolidated sales of KRW 6.88 trillion and operating profit of KRW 1.29 trillion for the first nine months of 2024, with an operating margin of 18.7%.

• Net income attributable to controlling interests reached KRW 1.06 trillion for the period.

• Year-over-year growth in RE sales offset OE sales decline due to reduced vehicle production.

• Continued global expansion and product innovation, including new EV tire launches and sustainability initiatives.

• Domestic tire market share remains stable at 30–40%, with the top three companies holding about 90%.

Financial highlights

• 3Q 2024 revenue up 4.1% YoY and 5.1% QoQ; operating profit up 18.6% YoY and 11.9% QoQ.

• 2024 9M revenue KRW 6,880 billion (+2.6% YoY), operating profit KRW 1,289 billion (+54.3% YoY), OPM 18.7% (+6.2%p YoY).

• Net income: KRW 1,069.2 billion, up from KRW 720.2 billion YoY.

• EBITDA for 3Q 2024 reached KRW 600.1 billion, up 14.8% YoY and 9.4% QoQ.

• Basic and diluted EPS: KRW 8,654, up from KRW 5,904 YoY.

Outlook and guidance

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

• Focus on aggressive R&D, brand power, and customer satisfaction to drive future growth.

• Ongoing investments in overseas plant expansions and sustainability projects.

• Mid-term dividend policy targets 20% payout of adjusted net income (excluding one-offs) for 2022–2024.

• 2024 sales ratio of ≥18 inch within PCLT targeted at 49%; 3Q YTD at 46%.