RF Materials (327260) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ₩21.9B, down from ₩47.9B in FY2023 and ₩50.4B in FY2022, reflecting a significant year-over-year decline.

• Operating loss for H1 2024 was ₩862M, compared to a small loss in FY2023 and an operating profit in FY2022.

• Net loss attributable to controlling interests was ₩1.13B for H1 2024, with EPS at -₩134, compared to -₩80 in FY2023 and ₩411 in FY2022.

• The company maintains a strong cash position with ₩3.4B in cash and cash equivalents at June 2024.

Financial highlights

• Gross margin for H1 2024 was ₩4.33B on ₩21.9B revenue, with a gross margin rate of 19.8%.

• Operating loss widened to ₩862M in H1 2024 from a loss of ₩34.6M in FY2023.

• Net loss for H1 2024 was ₩536M, compared to net profit of ₩714M in FY2023.

• Cash flow from operations was negative at -₩18.1B in H1 2024, compared to a positive ₩9B in H1 2023.

• Total assets at June 2024 were ₩100.8B, with equity of ₩60.4B and liabilities of ₩40.4B.

Outlook and guidance

• The company is expanding into 5G/6G, satellite, and high-power laser module markets, aiming for growth in high-value sectors.

• Ongoing R&D in next-gen RF, laser, and satellite communication packages, with multiple government-supported projects.

• Management expects demand growth in 5G, data centers, and defense, but notes risks from global trade tensions and customer concentration.