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Samsung Electro-Mechanics Co Ltd (XKRX:009150) Q4 2024 Earnings Call Highlights: Navigating ...

In This Article:

  • Q4 Revenue: KRW2,492.3 billion, 5% decrease QoQ, 8% increase YoY.

  • Q4 Operating Profit: KRW115 billion, 49% decrease QoQ, 1% increase YoY.

  • Pretax Profit: KRW198.2 billion.

  • Net Profit: KRW208.4 billion.

  • Total Assets: KRW12,792.4 billion, 1% increase QoQ.

  • Liability-to-Equity Ratio: 42%, decreased from previous quarter.

  • Debt-to-Equity Ratio: 17%, decreased from 23% in Q3.

  • Equity Ratio: Approximately 70%, slight increase QoQ.

  • Component Division Revenue: KRW1,081.8 billion, 10% decrease QoQ, 11% increase YoY.

  • Package Solution Division Revenue: KRW549.3 billion, 2% decrease QoQ, 24% increase YoY.

  • Optics Solution Division Revenue: KRW861.2 billion, 0.1% increase QoQ, 2% decrease YoY.

Release Date: January 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Samsung Electro-Mechanics Co Ltd (XKRX:009150) reported an 8% year-over-year increase in Q4 revenue, indicating strong annual growth.

  • The company achieved a 24% year-over-year increase in revenue for the Package Solution Division, driven by high-end substrate demand.

  • Automotive revenue continued to grow, supported by increased demand for electric vehicles (EVs) and advanced driver-assistance systems (ADAS).

  • The company is expanding its high-end product lineup, including high-temperature, high-capacitance products for AI servers and EV powertrains.

  • Samsung Electro-Mechanics Co Ltd (XKRX:009150) is actively pursuing new opportunities in the automotive camera module market, leveraging advances in autonomous driving technology.

Negative Points

  • Q4 revenue decreased by 5% quarter-over-quarter, reflecting some short-term challenges.

  • Operating profit in Q4 saw a significant 49% decrease quarter-over-quarter, indicating pressure on profitability.

  • The Component Division experienced a 10% quarter-over-quarter revenue decline due to seasonality and inventory adjustments.

  • Demand for IT and industrial MLCC decreased due to stagnant demand in applications such as smartphones and PCs.

  • The Optics Solution Division reported a 2% year-over-year revenue decrease, highlighting challenges in the camera module market.

Q & A Highlights

Q: Can you share some data points on your fourth quarter MLCC shipment inventory and ASP, and your first quarter outlook for MLCC? A: In Q4, automotive MLCC shipment increased by high single digits QoQ, but overall MLCC shipment decreased due to year-end inventory adjustments. Inventory slightly increased, and blended ASP rose due to a higher portion of automotive MLCC business. For Q1, shipment is expected to increase QoQ, driven by a new smartphone launch, AI server growth, and solid automotive MLCC demand.