Wonik QnC (074600) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was 449.3 billion KRW, up 5.8% year-over-year, with operating income at 68.8 billion KRW and net income attributable to controlling interests at 32.0 billion KRW, both showing declines from the previous year.

• The company operates in five main segments: Quartz Ware, Ceramic, Cleaning/Coating, Lamp, and Quartz Raw Materials, with significant overseas subsidiaries in the US, Taiwan, Germany, and China.

• The business is highly dependent on the semiconductor industry, with major customers including Samsung Electronics, SK Hynix, and global semiconductor equipment makers.

Financial highlights

• Consolidated revenue for H1 2024: 449.3 billion KRW (up 5.8% YoY); operating profit: 68.8 billion KRW (down 11.7% YoY); net profit attributable to controlling interests: 32.0 billion KRW (down 15.9% YoY).

• Gross margin for H1 2024 was 32.6%, with an operating margin of 15.3%.

• Cash and cash equivalents at period end: 62.8 billion KRW; total assets: 1.45 trillion KRW; total liabilities: 906.8 billion KRW.

• R&D expenses for H1 2024 were 3.53 billion KRW, representing 2.13% of sales.

Outlook and guidance

• The company expects increased demand in the semiconductor sector in H2 2024, driven by easing inventory burdens and strong AI semiconductor demand.

• Ongoing focus on expanding domestic 12-inch wafer sales, strengthening overseas synergies, and developing new business areas through R&D.