SKC (011790) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached KRW 462.3 bn, down 2.2% sequentially but up 22.5% year-over-year.

• Net profit improved to -49.5 bn, a 57.2% sequential increase and 24.5% year-over-year improvement.

• Operating profit remained negative at -62.0 bn, with EBITDA at -16.7 bn.

Financial highlights

• Gross profit for Q3 was -1.1 bn, with COGS at 463.4 bn.

• Profit before tax was -112.7 bn, a 24.9% sequential improvement.

• Profit attributable to the parent was -40.7 bn, up 65.1% sequentially.

Outlook and guidance

• Higher utilization in Malaysia expected due to new shipments and long-term contracts.

• Test socket revenue expected to decrease due to memory industry seasonality.

• Vietnam plant expansion to meet increased demand from major tech customers.

• PG segment to benefit from seasonal demand and stabilized freight; SM segment to see better spreads from lower raw material prices.

• Initial CHIPS Act subsidy grant anticipated by year-end.