DB HiTek CO (000990) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached W283.4BN, down 2% QoQ and 1% YoY, with operating profit at W40BN, down 16% QoQ and 12% YoY, mainly due to higher fixed costs.

• Power semiconductor demand remained strong, and DDI revenue recovered as TV demand increased, aided by Chinese subsidies.

• Achieved 75% utilization and 18% operating profit margin (parent only), outperforming competitors despite a sluggish 8-inch foundry market.

Financial highlights

• Gross profit for Q4 was W90.2BN, down 9% QoQ and 6% YoY; gross margin declined to 32%.

• EBITDA for Q4 was W81.0BN, down 7% QoQ; EBITDA margin at 28%.

• Net profit for Q4 was W57.0BN, down 19% YoY; net margin remained at 20%.

Outlook and guidance

• 8-inch foundry market expected to recover in 2025, with market growth forecast at +4% and company utilization projected to rise to mid-high 80% range.

• Revenue expected to grow by 10% in 2025, with operating profit margin recovering to around 20%.

• New products (Si capacitor, GaN) scheduled for mass production in 2025, supporting further revenue growth.

• Utilization projected to reach 95% in 2H 2026, driven by growth in auto, industrial, and communication sectors.