Young Poong (000670) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was ₩2,150.2 billion, a significant decrease from ₩3,761.7 billion year-over-year.

• Operating loss was ₩61.0 billion, narrowing from a loss of ₩169.8 billion in the previous year.

• Net income attributable to controlling interests was ₩71.4 billion, a turnaround from a net loss of ₩60.9 billion year-over-year.

• The company completed a major strategic investment in Korea Zinc, acquiring a 25.4% stake through a public tender offer.

Financial highlights

• Gross margin for the period was 1.3%, down from 3.2% in the prior year.

• Cash and cash equivalents at period end were ₩269.3 billion, up slightly from ₩267.0 billion at the previous year-end.

• Total assets stood at ₩5,877.0 billion, with total liabilities at ₩1,547.8 billion and equity at ₩4,329.2 billion.

• Basic EPS for the period was ₩41,533, compared to a loss of ₩35,382 per share last year.

• Dividend payout maintained at ₩10,000 per share.

Outlook and guidance

• Zinc prices are expected to remain volatile due to mixed global demand and supply factors, with potential upside from Chinese stimulus and downside from ongoing US-China tensions.

• The company aims to strengthen its position in core materials and expand its global footprint, focusing on eco-friendly and high-value-added products.