JUSUNG ENGINEERING (036930) Q2 2024 earnings summary

Executive summary

• Revenue for 1Q 2024 was 566 billion KRW, down 17.6% year-over-year, with operating profit at 70 billion KRW (OPM 12.4%).

• Revenue for H1 2024 was KRW 153.9 billion, up 53.3% year-over-year, driven by overseas semiconductor equipment sales in Q2.

• Operating profit reached KRW 43.1 billion in H1 2024, a 1,408.1% increase year-over-year, with an operating margin of 28.0%.

• Strategic business split into semiconductor, solar, and display equipment to enhance global competitiveness.

• Business recovery is expected in 2Q due to deferred China sales and display segment improvements.

Financial highlights

• 1Q 2024 revenue: 566 billion KRW (down 17.6% YoY); operating profit: 70 billion KRW (OPM 12.4%).

• Gross profit for H1 2024 was KRW 100.4 billion, with a gross margin of 65.2%.

• Cash and cash equivalents at period-end were KRW 215.1 billion, up from KRW 110.6 billion at the end of 2023.

• Backlog for 1Q 2024 totaled 2,520 billion KRW.

• Dividend payout for the period was KRW 2.36 billion, with a payout ratio of 6.95%.

Outlook and guidance

• 2Q performance expected to recover on deferred China sales and display segment improvement.

• Anticipated order growth in 2H 2024 from domestic and overseas semiconductor customers.

• Continued demand for differentiated ALD technology in semiconductors and expansion in display equipment sales expected.

• Market trends indicate robust growth in AI, high-performance computing, and renewable energy, supporting future equipment demand.

• 2025 outlook boosted by new customer expansion and solar segment revenue recognition.