HL Mando (A204320) Q2 2024 earnings summary

Executive summary

• Achieved sales of KRW 2,147.4 bn in Q2 2024, up 2.9% year-over-year, with operating profit of KRW 89.6 bn (OPM 4.2%).

• Net profit declined to KRW 11.9 bn (NPM 0.6%), impacted by higher corporate tax expenses from changes in subsidiary dividend policies in China.

• Secured KRW 5.3 tn in new business wins, reaching 76.4% of the FY 2024 target.

• Strengthened partnerships with leading EV and SDV players in North America and China, including new orders for chassis and ADAS solutions.

Financial highlights

• Sales increased 2.9% year-over-year and 1.9% sequentially from Q1 2024.

• Operating profit rose to KRW 89.6 bn, up 16.4% year-over-year and 18.5% quarter-over-quarter.

• Net income dropped sharply from KRW 51.1 bn in Q2 2023 and KRW 145.7 bn in Q1 2024.

• Operating margin improved to 4.2% from 3.7% a year ago.

Outlook and guidance

• Positioned to outperform the market with a projected CAGR of 10% from 2023 to 2028, compared to the market's 1.3%.

• Focus on expanding partnerships with SDV and EV leaders to drive future growth.