LX Semicon (108320) Q2 2024 earnings summary

Executive summary

• 2Q24 sales reached KRW 484.9 billion, up 24.2% year-over-year and 5.8% sequentially from 1Q24.

• Specializes in fabless semiconductor design and sales, focusing on system ICs for display panels, with diversification into MCU, power semiconductors, and heat dissipation substrates.

• Major products include Driver-ICs, T-Con, and PMIC, with Driver-ICs accounting for 89.67% of H1 2024 sales.

• Export sales comprise 98.56% of total H1 2024 revenue.

• Four consolidated subsidiaries, including a new Taiwan entity established in May 2024.

Financial highlights

• EBITDA for 2Q24 was KRW 64.1 billion, with EBITDA margin at 13.2%, up from 11.8% in 1Q24.

• H1 2024 consolidated revenue: ₩943.2B, down from ₩1,901.4B in H1 2023.

• Operating profit increased to KRW 56.1 billion in 2Q24, with operating margin at 11.6%.

• Net profit for 2Q24 was KRW 44.3 billion, up from KRW 40.1 billion in 1Q24.

• Cash and cash equivalents rose 66.4% year-to-date to KRW 507.5 billion.

Outlook and guidance

• DDI market expected to grow steadily from 2023 onward, driven by OLED adoption and premium display trends.

• Automotive and power semiconductor segments targeted for future growth, leveraging new product development in high-growth markets like EVs and renewable energy.

• Continued investment in R&D and technology to maintain competitiveness in premium and emerging markets.

• Forward-looking statements are subject to market and operational uncertainties, with actual results potentially differing materially.