Q2 2024 Samsung Electro-Mechanics Co Ltd Earnings Call Transcript
Key Points
- Q2 revenue increased by approximately 16% YoY, indicating strong annual growth.
- Operating profit in Q2 rose by 15% QoQ and 2% YoY, showing improved profitability.
- Component division saw a 13% QoQ and 15% YoY revenue increase, driven by higher sales in IT, industrial, and automotive sectors.
- Package Solution division experienced a 17% QoQ and 14% YoY revenue growth, fueled by demand for high-end substrates.
- MLCC demand increased across all applications, including IT, industrial, and automotive, with expectations for continued growth in Q3.
- Overall Q2 revenue decreased by 2% QoQ, indicating a short-term decline.
- Optics & Communication Solution division's Q2 revenue dropped by 22% QoQ due to negative seasonality and weak EV demand.
- Debt to equity ratio increased slightly QoQ, reflecting a rise in financial leverage.
- Automotive camera module sales decreased in Q2 due to stagnant global EV growth.
- Flip chip BGA market faces continuing oversupply, posing challenges for the package substrate business.
Good afternoon. This is Taiyoung Kim, Head of IR & Planning Team at Samsung Electro-Mechanics. Thank you for joining our 2024 Q2 earnings conference call. On today's call, I am joined by CFO, Sung Jin Kim; EVP, Won-taek Kim, Head of Strategic Marketing; VP [Jun-taek Park], Head of Support Team, Component division; [Sung Jin Kim], Head of Support Team, Optics & Communication Solution division; and VP, Hong Jin Kim, Head of Support team of the Package Solution division. We will start with a presentation on our second-quarter company level and divisional business results, followed by market trends and outlook by product before we take your questions.
First, our 2024-Q2 results. In Q2, our revenue was KRW2,580.1 billion, which is approximately a 2% decrease QoQ, but a roughly 16% increase YoY. The details regarding our revenue increase/decrease factors by division will be explained later during the divisional results. Q2 operating profit was KRW208.1 billion, which is about 15% increase QoQ and around a 2% increase YoY. Pre-tax
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