Value Added Technology (043150) Q2 2024 earnings summary

Executive summary

• Achieved consolidated revenues of KRW 101,980 million in 2Q24, flat year-over-year and up 8.2% sequentially, driven by new product sales and expanded U.S. dealer network.

• Specializes in dental imaging, developing digital X-ray systems and CTs, with a global network of 22 subsidiaries and strong R&D capabilities.

• Maintains a leading position in the dental imaging market, with a broad product lineup and significant intellectual property portfolio.

• Operating income declined 14.9% year-over-year to KRW 16,844 million due to increased labor costs from overseas sales force expansion.

• Net income decreased 12.9% year-over-year to KRW 15,065 million, reflecting lower operating income.

Financial highlights

• 2024 H1 consolidated revenue: ₩196.2 billion, down from ₩384.9 billion in FY2023.

• Operating income for H1 2024: ₩31.2 billion; net income: ₩32.3 billion.

• Gross profit margin was 52.9% in 2Q24, up 0.2 percentage points year-over-year.

• Operating profit margin was 16.5% in 2Q24, down 2.9 percentage points year-over-year.

• Basic EPS for H1 2024: ₩2,162, compared to ₩3,483 in H1 2023.

Outlook and guidance

• Plans to expand 3D premium and mid/entry product sales as market demand shifts from 2D to 3D.

• Continues to invest in R&D and expand product offerings, targeting premium and entry-level segments globally.

• Expects growth in global dental imaging demand, especially in emerging markets and premium CT categories.

• Focus on strengthening product quality, technology, and customer service to expand market dominance.

• Targeting developed markets with large FOV models and emerging markets with entry-level models.