Solum (248070) Q4 2023 earnings summary

Executive summary

• FY2023 revenue reached ₩1,951.1bn, up 15.1% YoY; operating profit rose 104.4% to ₩154.5bn and net income rose 162.8% to ₩119.4bn.

• ICT growth more than offset lower electronics-component sales; ESL revenue expanded while electronics-component operating profit declined YoY.

• 2024 priorities include growing ESL, VS and power modules, advancing new businesses, strengthening technology leadership and manufacturing capability, and expanding revenue and profitability.

Financial highlights

• Revenue ₩1,951.1bn vs ₩1,694.5bn YoY; gross profit ₩314.4bn vs ₩208.8bn; operating profit ₩154.5bn vs ₩75.6bn.

• Net income ₩119.4bn vs ₩45.4bn; attributable net income ₩120.4bn vs ₩47.3bn; basic EPS ₩2,464 vs ₩954.

• EBITDA ₩188.8bn vs ₩108.1bn; operating cash flow ₩336.9bn vs ₩40.9bn.

• Cash and cash equivalents were ₩131.9bn at year-end vs ₩106.9bn; total assets were ₩938.6bn vs ₩1,034.3bn.

Outlook and guidance

• 2024 outlook anticipates growth from ESL, VS, power modules and new businesses despite global economic uncertainty, protectionism and won volatility.

• Healthcare plans include wearable TWS using PPG and temperature sensors and EEG-based mental-health solutions, with 2024 mass production targeted.

• Second-life battery plans include power banks, small ESS and mobile EV-charging carts, subject to completion of practical certification and testing procedures.

• Continued investment in ESL, 3-in-1 boards and ICT R&D supports growth; cost reduction, productivity and premium-product development remain priorities.