ACSL (6232) Q2 2024 earnings summary

Executive summary

• Sales surged 291% year-over-year in Q2, driven by a large India project and robust domestic demand.

• Net sales for the six months ended June 30, 2024 reached 2.05 bn JPY, with a net loss attributable to owners of parent of 1.01 bn JPY.

• Operating loss widened to 1.03 bn JPY from 880 mn JPY year-over-year, mainly due to increased R&D and overseas expansion.

• Comprehensive income was negative 1.0 bn JPY, compared to negative 897 mn JPY in the prior year period.

• Overseas expansion accelerated, with significant progress in the U.S., India, and Taiwan.

Financial highlights

• Q2 net sales reached 2.05 bn JPY, up from 524 mn JPY year-over-year.

• Gross profit turned positive at 100 mn JPY, reversing a loss of 9 mn JPY in the prior year period.

• SG&A expenses increased by 255 mn JPY, mainly due to SBIR R&D and U.S. subsidiary costs.

• Capital adequacy ratio declined to 23.3% from 42.2% at year-end 2023.

• Backlog for the domestic market rose 190% to 658 mn JPY.

Outlook and guidance

• Full-year 2024 net sales forecast at 3.34 bn JPY, up 272.6% year-over-year.

• Full-year operating loss projected at 1.86 bn JPY, with basic EPS forecast at negative 130.53 JPY.

• Excluding the India project, sales are expected to reach 1.5 bn JPY, with backlog already over 1 bn JPY.

• Overseas sales, especially in the U.S., are expected to increase in the second half of 2024 due to regulatory shifts.

• No dividend is planned for the fiscal year ending December 31, 2024.