HIGEN Motor (160190) Q3 2024 earnings summary

Executive summary

• Manufactures industrial motors, servo motors, robot actuators, and EV motors, with a strong R&D focus and a leading position in Korea's motor market.

• Listed on KOSDAQ in June 2024, with significant capital restructuring including a stock split and treasury share cancellation.

• Operates a subsidiary in China for cost-competitive production and maintains a robust patent and certification portfolio.

Financial highlights

• 2024 Q3 consolidated revenue: ₩56.5B, down from ₩77.2B in 2023 and ₩87.5B in 2022.

• Operating profit for 2024 Q3: ₩484M, sharply down from ₩4.3B in 2023 and ₩4.9B in 2022.

• Net profit for 2024 Q3: ₩184M, compared to ₩2.6B in 2023 and ₩4.0B in 2022.

• Gross margin for 2024 Q3: 10.3%, down from 11.5% in 2023.

• Basic EPS for 2024 Q3: ₩7, compared to ₩109 in 2023.

Outlook and guidance

• Anticipates growth in robot and EV motor segments due to automation and electrification trends.

• Participates in government projects for high-efficiency motors and expects regulatory changes to drive demand.

• Plans to expand into India and Southeast Asia for mobility products.