Samsung C&T (028260) Q2 2024 earnings summary

Executive summary

• 2Q24 consolidated sales reached KRW 11,005 bn, up KRW 419 bn year-over-year and KRW 209 bn quarter-over-quarter.

• Operates across construction, trading, fashion, resort, food service, and bio industries, with 127 subsidiaries as of June 2024, including major listed entity Samsung Biologics.

• Construction and trading remain the largest revenue contributors, with bio and food service showing growth.

• Maintains strong credit ratings (AA+ for bonds, A1 for commercial paper) from multiple agencies as of mid-2024.

• Recent strategic moves include major investments in bio, renewable energy, and digital transformation.

Financial highlights

• H1 2024 consolidated revenue: ₩21.8 trillion, up KRW 976 bn year-over-year; net profit attributable to controlling interest: ₩1.3 trillion.

• H1 2024 operating profit: ₩1.61 trillion; net profit for 2Q24 was KRW 734 bn, a decrease of KRW 88 bn quarter-over-quarter but up KRW 39 bn year-over-year.

• Gross profit for 2Q24 was KRW 1,913 bn, up KRW 264 bn quarter-over-quarter and KRW 225 bn year-over-year.

• H1 2024 EPS: ₩7,972 (common), ₩7,997 (preferred); FY2023 EPS: ₩13,556 (common), ₩13,606 (preferred).

• Total assets as of June 2024: ₩68.3 trillion; equity: ₩42.3 trillion; liabilities: ₩26.0 trillion.

Outlook and guidance

• Continued focus on new business development in hydrogen, SMR, and bio sectors to drive future growth.

• Construction market faces headwinds from high interest rates and subdued private demand, but public sector and overseas projects offer growth.

• Trading expects moderate recovery as global inflation eases, but geopolitical risks persist.

• Bio and food service divisions forecast continued expansion, leveraging global outsourcing and health trends.

• Maintains stable dividend policy, targeting 60–70% of affiliate dividend income, with minimum annual payout of ₩2,000 per share through 2025.