Solum (248070) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ₩778.8 billion, down from ₩1,951.1 billion in H1 2023, with net income at ₩26.8 billion, a significant decrease from ₩119.4 billion year-over-year.

• Operating profit for H1 2024 was ₩40.9 billion, compared to ₩154.5 billion in H1 2023.

• The company operates two main segments: electronic components (power modules, 3IN1 boards) and ICT (ESL, IoT), with global manufacturing and sales presence.

• Major new subsidiaries were established in Singapore, Dongguan (China), and Brazil during H1 2024.

• The company is expanding into healthcare wearables and secondary battery reuse as new business areas.

Financial highlights

• H1 2024 revenue: ₩778.8 billion (down 60% year-over-year); operating profit: ₩40.9 billion (down 74%).

• Net income for H1 2024: ₩26.8 billion, compared to ₩119.4 billion in H1 2023.

• Basic EPS for H1 2024: ₩563, down from ₩2,464 in H1 2023.

• Gross margin for H1 2024: ₩330.99 billion, down from ₩652.07 billion in H1 2023.

• R&D expenses for H1 2024: ₩16.3 billion, 2.1% of sales.

Outlook and guidance

• The company is preparing for growth in healthcare wearables and secondary battery reuse, targeting mass production of TWS and EEG devices in 2024.

• Plans to expand ESL and IoT solutions to new markets, leveraging existing customer networks.

• Ongoing investment in R&D and organizational expansion to support new business lines.