Aiphone (6718) Q2 2024 earnings summary

Executive summary

• H1 revenue reached a record ¥30.15bn, up 26.3% YoY, as component supply recovered and backlogs cleared; operating profit more than doubled to ¥3.02bn.

• Full-year revenue guidance was raised to a record ¥60.0bn, with operating profit forecast at ¥5.5bn; annual dividend guidance increased to ¥100 per share.

Financial highlights

• H1 revenue was ¥30.15bn, up 26.3% YoY and 1.2% above plan; domestic and overseas markets both grew.

• Operating profit rose 128.1% YoY to ¥3.02bn; ordinary profit increased 108.0% to ¥3.50bn, and net income attributable to owners increased 109.6% to ¥2.63bn.

• Versus the H1 plan, operating profit was 8.5% below, ordinary profit 2.6% below, and net income 5.7% below.

• Revenue growth included favorable currency translation; higher component costs at overseas production subsidiaries and increased development, promotion, and North American selling expenses weighed on profit.

Outlook and guidance

• FY2024 revenue forecast was raised to ¥60.0bn, a record and 13.6% above FY2023; revised guidance was 5.8% above the initial plan.

• FY2024 operating profit guidance is ¥5.5bn (+46.3% YoY), ordinary profit ¥6.2bn (+48.8%), and net income attributable to owners ¥4.6bn (+57.0%).

• Forecast reflects H1 results and component supply conditions; management cited substantial revenue growth as offsetting some profit pressure from yen depreciation.

• Price increases of ~10% took effect for orders from Oct. 1, 2023, for Vi-nurse care systems and IX business-market systems.