SKC (011790) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 13.8% sequentially to KRW 472.7bn, but operating loss narrowed to KRW -62.7bn from KRW -76.2bn in Q1.

• Net loss deepened to KRW -115.3bn, with profit attributable to the parent at KRW -116.3bn.

• Semiconductor materials segment delivered strong growth, while EV battery materials and chemicals faced ongoing challenges.

Financial highlights

• Revenue increased 4.1% year-over-year and 13.8% quarter-over-quarter.

• Operating profit margin improved to -13.3% from -18.4% in Q1.

• Gross profit returned to positive at KRW 6.7bn after a loss in Q1.

• Recognized a one-off impairment loss of KRW 33bn on financial assets in Q2.

Outlook and guidance

• Prolonged demand slowdown expected in the global EV value chain, but sequential production increases in Malaysia anticipated to support earnings recovery.

• Semiconductor materials expected to maintain momentum, aiming for global leadership in test sockets.

• Chemical segment to benefit from stable raw material prices and ongoing cost improvements.

• New business initiatives include commercialization of glass substrates by 2025 and expansion of eco-friendly materials.