Korea Computer (054040) Q4 2024 earnings summary

Executive summary

• Revenue increased by 13.3% year-over-year to 421.0 billion KRW, driven by strong OLED PBA sales in Vietnam despite declines in domestic INVERTER and QD PBA segments.

• Operating income fell 48.9% year-over-year to 12.2 billion KRW due to higher fixed costs and raw material prices.

• Net income attributable to controlling interests dropped 37.4% year-over-year to 13.6 billion KRW.

• Cash and cash equivalents rose to 47.8 billion KRW, supporting robust liquidity.

Financial highlights

• Revenue: 421.0 billion KRW (+13.3% YoY); Operating income: 12.2 billion KRW (–48.9% YoY); Net income: 13.6 billion KRW (–37.4% YoY).

• Gross margin declined due to increased raw material costs and lower domestic sales.

• EPS: 980 KRW (–35.2% YoY).

• Cash flow from operations: 26.2 billion KRW; Capex focused on manufacturing automation.

Outlook and guidance

• 2025 revenue expected to remain flat due to continued sluggishness in key end markets.

• Focus on new sales channels, productivity improvements, and cost control to offset fixed cost pressures.