Hanwha (000880) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was KRW 1,257Bn, down 32.1% year-over-year and 19.2% sequentially from 2Q24.

• Operating profit reached KRW 59Bn, a 13.9% decrease year-over-year, but a turnaround from a loss in the previous quarter.

• Net income surged to KRW 235Bn, up 1502% year-over-year and a significant recovery from a net loss in 2Q24.

• Report covers Q3 2024 (Jan 1–Sep 30) for a large, diversified conglomerate with operations in manufacturing, construction, chemicals, energy, finance, and retail.

• The group completed major business portfolio restructuring, including divestitures and a material spin-off of the momentum business.

Financial highlights

• Gross profit for 3Q24 was KRW 182Bn, slightly down from KRW 189Bn in 3Q23.

• SG&A expenses remained stable at KRW 123Bn versus KRW 121Bn in 3Q23.

• Other income rose sharply to KRW 314Bn from KRW 55Bn year-over-year.

• Total assets at quarter-end were KRW 10,391Bn, with equity at KRW 3,478Bn.

• Consolidated Q3 2024 revenue: 37.65 trillion KRW, down from 53.13 trillion KRW in FY2023.

Outlook and guidance

• E&C division expects to commence construction for the Seoul Station project in November (KRW 1.2Tn) and has a contract amendment for the Iraq BNCP project (backlog: KRW 7.6Tn).

• Global division plans commercial production after expanding nitrogen capacity to 400K tons, aiming to strengthen cost competitiveness and diversify export markets.

• The group is focused on strengthening its core businesses, expanding global operations, and investing in future growth sectors such as renewable energy and advanced materials.

• Ongoing cost control, risk management, and capital discipline are emphasized amid global economic uncertainty.

• Total E&C orders for 2024 are projected at KRW 2.4Tn, with development at KRW 2.0Tn and infra at KRW 0.4Tn.