HANMI Semiconductor (042700) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was ₩200.8 billion, up 26.3% year-over-year, driven by strong domestic sales and continued demand for semiconductor manufacturing equipment.

• Operating income surged to ₩84.1 billion, a 143% increase from the previous year, reflecting improved gross margins and cost control.

• Net income for the period was ₩57.8 billion, compared to ₩33.9 billion in the prior year, with basic EPS at ₩599.

• The company maintained a robust cash position, with cash and equivalents at ₩111.0 billion at period-end.

Financial highlights

• Gross margin improved to 53.3% for the half-year, up from 47.9% a year earlier.

• R&D expenses totaled ₩10.3 billion, representing 5.2% of sales.

• The company recognized a ₩17.3 billion fair value loss on equity investments, impacting other comprehensive income.

• Inventory increased to ₩132.0 billion, reflecting higher production and order backlogs.

Outlook and guidance

• Management expects continued growth in HBM (High Bandwidth Memory) and AI semiconductor equipment demand.

• The company is expanding manufacturing capacity, including a new factory site acquisition in July 2024.

• No specific quantitative guidance was provided, but the company remains optimistic about industry trends.