LG Innotek (011070) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was reported as ₩14.57 trillion, down 29% year-over-year, while another report cited ₩5,685.1 billion, up 19.3% year-over-year; operating income figures also varied, with ₩458.2 billion (down 45% YoY) and ₩130.4 billion (down 28.9% YoY) reported.

• Net income for Q3 2024 was ₩342.4 billion (down 39% YoY) in one report and ₩105.0 billion (down 18.7% YoY) in another.

• The company operates in Optical Solutions, Substrate Materials, and Automotive Components, with recent internal reorganization to enhance synergy.

• Maintains strong market positions in camera modules, semiconductor substrates, and automotive components, with significant R&D investment.

Financial highlights

• Q3 2024 EBITDA was ₩458.0 billion, up from ₩434.2 billion in Q3 2023.

• Gross margin was 8.4%, down from 10.2% in Q3 2023.

• EPS was ₩14,467, down from ₩23,884 in Q3 2023.

• CAPEX for Q3 2024 was reported as ₩535.8 billion and ₩200.8 billion in different sources.

• Cash and equivalents at quarter-end were ₩821.0 billion.

Outlook and guidance

• Expects further revenue growth in Q4 2024, driven by expanded supply to strategic customers, new model launches, and demand for high-performance camera modules and semiconductor substrates.

• Plans to expand market share in core businesses and accelerate new business development in sensing and substrate control technologies.

• Substrate & Material anticipates continued growth in semiconductor substrates but ongoing weakness in display products.

• Automotive Components expects Q4 sales to decline due to weak demand and year-end inventory adjustments, but aims to strengthen profitability through high-value products.