Samsung Electro-Mechanics (009150) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached KRW 2,492.3 billion, up 8% YoY but down 5% QoQ; full-year sales were KRW 10,294.1 billion, up 8.6% YoY.

• Net profit for Q4 was KRW 208.4 billion, up 81% QoQ and 380% YoY; full-year net income was KRW 679.1 billion, up 60% YoY.

• Operating profit for Q4 was KRW 115 billion (4.6% margin), down 49% QoQ but up 1% YoY; full-year operating profit was KRW 735 billion (7.1% margin).

• Communication module business discontinued in 2024; results reclassified as discontinued operations.

• Full-year revenue surpassed KRW 10 trillion, with all business units showing growth.

Financial highlights

• Q4 pre-tax profit: KRW 198.2 billion; net profit: KRW 208.4 billion.

• Gross profit in Q4 was KRW 439.2 billion (17.6% margin), down 17% QoQ but up 14% YoY.

• Total assets at Q4-end: KRW 12,792.4 billion, up 1% QoQ.

• Cash at end of Q4 was KRW 2,013.3 billion, down from Q3 but up YoY.

• Dividend per common stock increased to KRW 1,800 for 2024, with payout ratio at 20% or above.

Outlook and guidance

• Q1 2025 expected to see improved performance QoQ and YoY, driven by new flagship smartphone launches and strong AI server demand.

• Full-year 2025 outlook remains positive, with growth expected in AI, automotive, and new business areas despite external uncertainties.

• CapEx will increase in 2025, focused on high-growth areas like automotive MLCC, AI, and server, with flexible execution based on demand.

• Emphasis on timely commercialization of silicon capacitors and all-solid-state batteries for mid- to long-term growth.

• Automotive and industrial MLCC demand expected to remain strong, driven by AI servers, EV/hybrid, and ADAS adoption.