Aidma Holdings (7373) investor relations material

Executive summary

• Revenue for the first half reached ¥7,248 million, up 16.1% year-over-year, with operating profit up 2.9% to ¥1,520 million and recurring profit up 1.4% to ¥1,506 million, driven by steady conversion of backlogged orders and increased new orders.

• Net income attributable to shareholders declined 4.4% year-over-year to ¥832 million, despite higher sales and profits at the operating level.

• Order volume remained at a record high, with total orders up 32.9% year-over-year, supported by strong cross-selling between business support and HR support units.

• Demand for digital and AI-driven sales support remained strong, especially among SMEs facing labor shortages.

• Strategic focus on AI-driven cost optimization, work infrastructure provision, and unit-based business support to address labor market challenges and enhance productivity.

Financial highlights

• Gross profit margin improved to 70.6% from 68.7% year-over-year, despite a temporary rise in cost of sales due to upfront investments.

• Selling, general, and administrative expense ratio increased to 49.7% (+4.6pt YoY) due to temporary increases in other items and planned investments in personnel.

• EPS for the interim period was ¥56.02, down from ¥57.07 a year earlier.

• Total assets at period-end were ¥10,691 million, down ¥209 million from the previous year-end, while net assets rose to ¥7,593 million.

• Cash and equivalents increased by ¥473 million to ¥5,823 million at period-end.

Outlook and guidance

• Full-year guidance maintained: revenue ¥17,000 million (+28.1% YoY), operating and recurring profit ¥4,000 million (+28.9% and +25.3% YoY), net income ¥2,300 million (+17.7% YoY), EPS ¥150.20.

• Full-year revenue progress rate is 42.6%, with operating profit at 38.0%; excluding temporary bad debt provisions, operating profit progress is about 42%.

• Expectation of accelerated revenue recognition from backlogged orders in the second half, supported by process improvements and new initiatives.

• Order intake for business support and HR support units is progressing well toward full-year targets (46.3% and 51.1% respectively).

• No changes to previously announced forecasts.