LG Innotek (011070) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached ₩4,555.3 billion, up 16.6% year-over-year and 5.1% sequentially.

• Operating income was ₩151.7 billion, a 726.2% increase year-over-year but down 13.8% from Q1 2024.

• Net income for the quarter was ₩98.9 billion, up 4,684.1% year-over-year but down 28.6% sequentially.

• 2024 half-year revenue was ₩8,888.8 billion, with operating income of ₩327.7 billion and net income of ₩237.4 billion.

• Operates in three main segments: Optical Solutions, Substrate Materials, and Automotive Components, with global manufacturing and R&D presence.

Financial highlights

• EBITDA for Q2 2024 was ₩476.1 billion, up 86% year-over-year.

• Operating margin was 3.3%, up 2.9 percentage points year-over-year but down 0.7 points sequentially.

• Gross margin for H1 2024 was 9.2%, and basic EPS was ₩10,030.

• Cash and equivalents increased 34.2% sequentially to ₩1,167.4 billion.

• Pre-tax income was ₩123.6 billion, up 3,685.7% year-over-year.

Outlook and guidance

• Optical Solutions expects continued growth from new model launches and automotive camera modules.

• Expects continued growth in premium smartphones, AI server demand, and automotive components, despite global economic uncertainties.

• Plans to expand market share in core businesses and invest in new growth areas such as LiDAR and advanced automotive sensors.

• Substrate & Material anticipates ongoing semiconductor substrate growth but weaker display demand.

• Automotive Components aims to maintain profitability despite EV market slowdown, focusing on high-value products.