Asahi Intelligence Service (9799) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 6.7% YoY to ¥14,786M, operating profit increased 8.8% to ¥1,427M, and net income grew 17.4% to ¥1,071M.

• Growth was led by DX-related work, legacy system renewal, and expanded orders in automotive and mobile telecommunications.

Financial highlights

• Revenue was ¥14,786M (+6.7% YoY); operating profit ¥1,427M (+8.8%); ordinary profit ¥1,456M (+8.3%); net income ¥1,071M (+17.4%).

• Operating margin was 9.7%, up from 9.5%; ordinary profit margin was 9.9%, up from 9.7%.

• Higher labor costs from staffing and wage increases, partner outsourcing costs, and technical training investment were offset by stronger project acquisition, add-on orders, and improved contract pricing.

Outlook and guidance

• FY2025 revenue is forecast at ¥15,550M (+5.2% YoY), operating profit at ¥1,535M (+7.5%), and net income at ¥1,077M (+0.5%).

• Forecast operating margin is 9.9% and ordinary profit margin 10.1%; annual dividend is expected to remain ¥56 per share.

• Continued demand is expected for cloud services, security, RPA and other DX initiatives, as well as renewal of legacy systems.