S-1 (012750) Q2 2024 earnings summary

Executive summary

• Revenue reached 695.7 billion KRW in 2Q'24, up 7% year-over-year and 5% sequentially.

• Net income for 2Q'24 was 43.3 billion KRW, a 6% increase year-over-year and 7% sequentially.

• Operates as a leading integrated security solutions provider, focusing on security and infrastructure services, with a strong presence in physical and information security, facility management, and security SI markets.

• Maintains a robust financial position, with stable credit ratings (AA+/AAA) from multiple agencies and no recent changes in capital structure or major shareholders.

• Emphasizes R&D and innovation, launching new AI, cloud, and IoT-based security solutions and expanding its intellectual property portfolio.

Financial highlights

• Operating income for 2Q'24 was 52.3 billion KRW, down 4% year-over-year but up 7% from 1Q'24.

• EBITDA for 2Q'24 was 96.9 billion KRW, nearly flat year-over-year and up 7% sequentially.

• Gross margin was 22% in 2Q'24, compared to 24% in 2Q'23 and 23% in 1Q'24.

• Consolidated revenue for H1 2024 was ₩1,358.5 billion, up from ₩1,308.8 billion in H1 2023.

• Net income attributable to controlling interests was ₩84.0 billion, down from ₩89.1 billion year-over-year.

Outlook and guidance

• Results are preliminary and unaudited; figures may change after external audit.

• Expects continued growth in security and infrastructure services, driven by demand for AI, IoT, and cloud-based solutions.

• Maintains a stable dividend policy, with a 2023 payout of ₩2,700 per share and a payout ratio of 48%.

• Focuses on expanding smart building management and integrated security offerings to capture new market opportunities.