Hyundai Autoever ( 307950) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q24 reached KRW 905 billion, up 21.3% year-over-year but down 1.5% sequentially from 2Q24.

• Net profit for 3Q24 was KRW 45 billion, a 22.6% increase year-over-year but a 15.1% decrease from the previous quarter.

• Revenue for the first nine months of 2024 was ₩2,554 billion, down 16.7% year-over-year, with net income at ₩123.5 billion, a 12% decrease from the prior year.

• The business is structured into IT Outsourcing (ITO), System Integration (SI), and Vehicle Software (SW), with ITO contributing 42%, SI 35%, and Vehicle SW 23% of total sales.

• Over 91% of sales are to Hyundai Motor Group affiliates, indicating high customer concentration.

Financial highlights

• Gross profit for 3Q24 was KRW 96 billion, up 13.3% year-over-year but down 10.4% sequentially.

• Operating profit for 3Q24 was KRW 52 billion, up 16.0% year-over-year but down 23.4% from 2Q24.

• Pre-tax profit for 3Q24 was KRW 54 billion, up 11.6% year-over-year but down 25.0% sequentially.

• Operating income for the first nine months was ₩151.8 billion, down 16.3% year-over-year.

• Gross margin was 10.7%, slightly lower than the previous year.

Outlook and guidance

• Management notes that forecasts are based on current strategies and may change with business conditions.

• The company is focusing on digital transformation, smart factory, and global IT system integration to drive future growth.

• Vehicle SW platform expansion and cloud-based mobility services are strategic priorities.

• R&D investment remains robust, with a focus on next-generation vehicle software and digital technologies.