Hyundai Mobis (A012330) Q2 2024 earnings summary

Executive summary

• 2Q24 revenue declined 6.6% year-over-year to KRW 14.7tn, mainly due to lower OEM production, a sharp drop in BEV sales, and reduced battery cell prices.

• Operating profit fell 4.2% year-over-year to KRW 636bn, impacted by fixed cost burdens from EV demand slowdown, despite strong A/S business performance.

• Non-captive orders reached $2.32bn, achieving 25% of the FY24 target, with delays in electrification projects expected to shift more orders to 2H.

Financial highlights

• Module/Core parts sales dropped 10.0% year-over-year to KRW 11.7tn; A/S business sales rose 9.9% to KRW 2.7tn.

• Net profit increased 7.0% year-over-year to KRW 998bn; net margin improved to 6.8%.

• Gross profit rose 5.0% year-over-year to KRW 1,828bn; gross margin at 12.5%.

• Pre-tax profit up 12.8% year-over-year to KRW 1,412bn.

Outlook and guidance

• Electrification sales growth expected to slow due to accounting rule changes, but operating margin rate is projected to gradually increase.

• Some electrification projects may be deferred to 2025 due to EV market challenges; focus remains on enhancing bidding for core parts in 2H.