HD Hyundai (267250) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenue reached 16.5 trillion KRW, down 1.2% sequentially but up 8.1% year-over-year, with stable sales in core businesses offsetting a decline in shipbuilding due to fewer working days.

• Operating profit surged 121.7% from the previous quarter and 48.8% year-over-year, driven by improved refining margins and solid performance in shipbuilding and electrical equipment.

• Net income turned positive, reaching 508.3 billion KRW, a significant turnaround from a loss in the previous quarter.

Financial highlights

• Revenue: 16,514.4 billion KRW (-1.2% QoQ, +8.1% YoY).

• Operating profit: 793.6 billion KRW (+121.7% QoQ, +48.8% YoY); margin improved to 4.8%.

• Net income: 508.3 billion KRW (returned to profit YoY and QoQ).

• Pre-tax income: 613.5 billion KRW (+12,681.3% QoQ, +190.1% YoY).

Outlook and guidance

• Oil: Tight supply-demand balance expected to keep Dubai oil above $80, but volatility may increase due to geopolitical risks.

• Shipbuilding: Order intake target of $15.8B for 2024, with higher value-added and eco-friendly vessels supporting margin improvement.

• Construction equipment: 2024 sales and profit growth expected through strategic product launches and cost controls.

• Electrical: Strong demand from global infrastructure and carbon-neutral projects to drive long-term growth.

• Robotics: Automation investment expected to expand across industries.