CKD (6407) Q4 2024 earnings summary

Executive summary

• FY2023 net sales fell 16% YoY to ¥134.4bn; operating income declined 38% to ¥13.1bn and net income fell 44% to ¥8.3bn.

• FY2024 guidance targets recovery: net sales of ¥148.0bn, operating income of ¥17.5bn and net income of ¥11.8bn.

Financial highlights

• Net sales decreased ¥25.0bn YoY; operating income decreased ¥8.1bn and ordinary income decreased ¥8.1bn to ¥13.0bn.

• Components sales fell ¥27.1bn YoY to ¥116.8bn, while Automatic Machinery sales rose ¥2.1bn to ¥17.7bn.

• Operating income bridge: lower sales reduced income by ¥7.9bn; cost-ratio changes reduced it by ¥1.6bn, while lower SG&A added ¥0.8bn and exchange-rate changes added ¥0.6bn.

Outlook and guidance

• FY2024 forecast: net sales ¥148.0bn (+10% YoY), operating income ¥17.5bn (+33%), ordinary income ¥17.5bn (+34%) and net income ¥11.8bn (+41%).

• FY2024 operating margin forecast is 11.8%, up 2.0 percentage points YoY; estimates use ¥145/$ exchange rate.

• Automatic Machinery orders are forecast at ¥19.0bn, down ¥2.5bn YoY; segment sales are forecast at ¥19.0bn and segment income at ¥3.3bn.

• Components FY2024 forecast: sales of ¥129.0bn (+¥12.2bn YoY), segment income of ¥18.8bn (+¥4.0bn) and margin of 14.6%.