Samsung Electro-Mechanics (A009150) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was KRW 2,580.1 billion, up 16% YoY but down 2% QoQ, with operating profit at KRW 208.1 billion, up 15% QoQ and 2% YoY; net profit was KRW 172.4 billion, up 53% YoY.

• H1 2024 revenue rose 22.7% YoY to ₩5,204.4 billion, with operating income at ₩388.4 billion and net income attributable to owners at ₩355.5 billion.

• The company maintains a strong global presence with 14 subsidiaries and 1 sub-subsidiary, and no changes in capital structure over the past five years.

Financial highlights

• Q2 gross profit margin improved to 20.1% from 18.1% in Q1 2024, but down from 21.7% in Q2 2023.

• Pre-tax profit in Q2 was KRW 231.1 billion, up 5% QoQ and 59% YoY.

• Cash and cash equivalents at period-end: ₩2,355.4 billion; total assets grew 5% QoQ to KRW 12,744.5 billion.

• H1 2024 EPS (common): ₩4,705; gross margin improved to 19.1% YoY.

Outlook and guidance

• Q3 is expected to see seasonal demand growth, especially with new smartphone launches and continued industrial and automotive demand.

• MLCC and package substrate revenue anticipated to increase in Q3, driven by AI server, PC, and automotive applications.

• Focus on expanding high-end product lineups and increasing supply to meet AI and automotive market needs.

• Continued investment in capacity expansion and R&D, with ₩2,933 billion invested in 2024 YTD.