Hanwha (000880) Q4 2024 earnings summary

Executive summary

• Consolidated 4Q24 sales rose 24% YoY to KRW 18,000bn and operating profit increased 386% to KRW 1,126bn; FY24 sales reached KRW 55,647bn and operating profit KRW 2,416bn.

• Separate FY24 revenue declined 18.4% to KRW 5,878bn, while operating profit rose 60.9% to KRW 304bn; 4Q24 EBT was a KRW 13bn loss.

Financial highlights

• Consolidated 4Q24 net income was KRW 1,686bn versus KRW 10bn in 4Q23; FY24 net income was KRW 1,690bn versus KRW 1,636bn.

• Separate 4Q24 revenue was KRW 1,413bn, down 27.6% YoY; operating profit was KRW 83bn versus KRW 14bn, and EBT was negative KRW 13bn versus positive KRW 47bn.

• Separate FY24 gross profit rose to KRW 799bn from KRW 692bn; operating profit was KRW 304bn versus KRW 189bn, EBT KRW 356bn versus KRW 87bn, and net income KRW 195bn versus KRW 91bn.

• Consolidated FY24 sales were KRW 55,647bn versus KRW 53,135bn; operating profit was KRW 2,416bn versus KRW 2,412bn.

Outlook and guidance

• E&C expects 2025 order intake of KRW 4.2tn, including KRW 3.6tn in development and KRW 560bn in infrastructure orders.

• E&C plans to advance northern Seoul Station and Suseo Station transfer-center developments, grow high-profit data-center work, complete 30,000 Iraq BNCP homes, and restart construction of the remaining 70,000 units.

• Global plans to expand nitrogen capacity to 400,000 tonnes, increase overseas sales, grow ammonium nitrate and electronic detonator sales, diversify exports, and secure long-term supply contracts.

• Consolidated outlook cites defense backlog and exports, solar module sales recovery, higher insurance profit from CSM/RA amortization, and stronger investment gains from interest and dividend income.