LX International (001120) Q2 2024 earnings summary

Executive summary

• Achieved sales of KRW 4.1 trillion in 2Q 2024, up 7% year-over-year and 8% quarter-over-quarter, driven by higher LCD panel and ocean freight prices and volumes.

• Operates across resources, trading/new growth, and logistics, with 93 consolidated subsidiaries globally as of June 2024.

• Maintains strong credit ratings (AA-) from major agencies for both company and key subsidiaries.

• Major business segments: resources (7.2% of sales), trading/new growth (46.8%), logistics (46.0%).

• Net profit rose to KRW 113.1 billion in 2Q 2024, a 57% increase year-over-year and 15% sequentially.

Financial highlights

• EBITDA for 2Q 2024 was KRW 219.6 billion, up 7% year-over-year and 11% quarter-over-quarter.

• H1 2024 consolidated revenue: ₩7,849.7B, up from ₩7,140.3B in H1 2023.

• Net income attributable to controlling interest: ₩170.5B (H1 2024), up from ₩117.1B (H1 2023).

• Shareholders’ equity increased to KRW 3,381.8 billion from KRW 3,074.9 billion at the end of 2023.

• Gross profit for 2Q 2024 was KRW 380.6 billion, up from KRW 370.9 billion in 2Q 2023.

Outlook and guidance

• Growth supported by rising LCD panel and ocean freight rates and volumes.

• Focus on expanding nickel and battery materials, logistics, and new growth sectors.

• Ongoing investments in Indonesian nickel mining and battery materials, and logistics infrastructure.

• Continued focus on expanding eco-friendly and green projects, including hydropower and EV battery materials.

• Cautious on macroeconomic volatility, commodity price swings, and global supply chain risks.