HD Hyundai (267250) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 rose 12.4% year-over-year and 6.3% sequentially, driven by growth in shipbuilding and electrical equipment segments.

• Operating profit increased 86.2% year-over-year and 10.9% sequentially, with all business units remaining profitable despite weaker refining margins.

• Net income surged 192.1% year-over-year and 7.0% sequentially, reflecting improved profitability across major segments.

• Report covers the half-year ended June 30, 2024, for a diversified holding company with major subsidiaries in shipbuilding, energy, industrial equipment, and robotics.

• The group operates through multiple listed and unlisted subsidiaries, with recent expansion in renewable energy and digital solutions.

Financial highlights

• Q2 2024 revenue: ₩1,755.5 billion; operating profit: ₩87.99 billion; net income: ₩54.41 billion.

• Consolidated revenue for H1 2024: ₩34.07 trillion, down from ₩61.33 trillion in FY2023 (H1 2023: ₩30.90 trillion).

• Operating income for H1 2024: ₩1.67 trillion (H1 2023: ₩1.01 trillion).

• Net income attributable to owners: ₩339.4 billion (H1 2023: ₩185.8 billion).

• Interim dividend: ₩900 per share, total ₩63.6 billion per quarter.

Outlook and guidance

• Oil prices expected to remain strong in Q3 due to OPEC supply discipline and geopolitical risks, with stabilization in Q4.

• Shipbuilding to benefit from higher vessel prices and stable demand, with profitability expected to improve.

• Construction equipment and robotics segments anticipate moderate growth, supported by new product launches and market expansion.

• Electrical equipment segment to see continued demand from global infrastructure and energy transition projects.

• The group expects continued growth in shipbuilding, energy, and industrial equipment, with a focus on expanding renewable energy and digital solutions.