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 from 1Q24, driven by new product sales and expanded U.S. dealer network.

• 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

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

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

• Net profit margin was 14.8%, down 2.2 percentage points year-over-year.

• 4-year revenue CAGR (2020-2024) reached 16.4%.

• 4-year operating income CAGR (2020-2024) was 26.5%.

Outlook and guidance

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

• 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.