Korea Computer (054040) Q2 2024 earnings summary

Executive summary

• The company operates primarily in the EMS (Electronics Manufacturing Service) sector, producing OLED and QD-OLED PBA products for major display and electronics clients, with additional revenue from industrial inverters and real estate leasing.

• The first half of 2024 saw consolidated revenue of 199.7 billion KRW, with net income of 7.2 billion KRW, and a strong cash position despite a decrease from the previous year.

• The company maintains a stable capital structure, with a debt ratio of 37.07% at the end of June 2024.

Financial highlights

• Consolidated revenue for H1 2024 was 199.7 billion KRW, down from 371.7 billion KRW in H2 2023.

• Operating income for H1 2024 was 6.9 billion KRW, and net income was 7.2 billion KRW.

• Cash and cash equivalents at period end were 32.0 billion KRW, down from 40.6 billion KRW at the end of 2023.

• Gross margin for H1 2024 was approximately 5.7%, with EPS of 509 KRW.

Outlook and guidance

• The company continues to focus on high-value EMS products, especially for display and mobile device markets, and is investing in advanced SMT and module assembly capabilities.

• No specific forward-looking financial guidance was provided, but the company expects continued demand for OLED and QD-OLED modules.