Hyundai Motor Securities (001500) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 was KRW 1,795.6 billion, up 13.5% year-over-year, but net income declined 32.4% to KRW 36.1 billion due to lower IB segment performance and increased risk provisions.

• Asset management and trading segments showed resilience, while IB was impacted by real estate PF market weakness.

• The company maintained strong capital adequacy and liquidity, with a year-end cash position of KRW 77.3 billion.

Financial highlights

• Total assets: KRW 11,991.9 billion (+3.5% YoY); total equity: KRW 1,302.1 billion (+1.9% YoY).

• Operating income: KRW 54.7 billion (-16.1% YoY); pre-tax income: KRW 50.5 billion (-22.7% YoY).

• Net income: KRW 36.1 billion (-32.4% YoY); ROE: 2.8% (down 1.5pp YoY).

• Segment pre-tax profit: Asset management KRW 26.6 billion, IB -KRW 19.0 billion, Brokerage/Financial products KRW 15.3 billion, Other KRW 27.6 billion.

• Net cash from operations: KRW 86.8 billion; cash and equivalents at year-end: KRW 77.3 billion.

Outlook and guidance

• The company targets ROE improvement to 8% by 2027 and 10%+ from 2028, with a dividend payout ratio of 30–35% through 2027 and 40%+ thereafter.

• Management expects continued risk from real estate PF exposure but is focused on portfolio diversification and proactive risk management.