Daitron (7609) Q3 2024 earnings summary

Executive summary

• 3Q FY2024 cumulative net sales reached ¥66,589 million, 97.6% of the previous year, with net income at ¥2,575 million, 80.1% year-over-year.

• Overseas sales ratio increased to 23.0% from 19.7% year-over-year, with notable growth in North America.

• The electronics industry saw sluggish production in electronic components and manufacturing equipment, especially due to weakness in the Chinese market.

• The company is executing its 11M Medium-Term Business Plan, targeting sustained growth and a long-term vision of over ¥100 billion in net sales by 2030.

• Operating income decreased 18.7% year-over-year to ¥3,848 million.

Financial highlights

• Operating income for 3Q FY2024 was ¥3,848 million, 81.3% year-over-year.

• Ordinary income was ¥3,826 million, 79.3% year-over-year.

• Net assets increased to ¥30,779 million, up ¥1,328 million year-over-year, with equity ratio at 42.9%.

• Gross profit for the period was ¥13,114 million, down from ¥13,588 million year-over-year.

• EPS for the period was ¥231.91, compared to ¥289.70 in the prior year.

Outlook and guidance

• Full-year FY2024 forecast: net sales ¥92,500 million (100.4% y/y), operating income ¥6,000 million (100.9% y/y), net income ¥4,100 million (102.1% y/y).

• Dividend forecast for FY2024 is ¥125 per share, with a payout ratio of 33.9%.

• No changes to previously announced guidance.