Estic (6161) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached a record ¥7,127 million, up 6.1% YoY; operating income rose 0.4% to ¥1,490 million and net income increased 5.0% to ¥1,133 million.

• Overseas sales expanded despite uneven regional demand, with growth in North America and India offsetting weakness in China and delayed domestic automotive investment.

Financial highlights

• Revenue was ¥7,127 million, up ¥408 million YoY; gross profit was ¥3,291 million, up ¥123 million.

• Operating income increased ¥5 million to ¥1,490 million; ordinary income rose ¥16 million to ¥1,550 million; net income rose ¥53 million to ¥1,133 million.

• EPS was ¥113.99, up ¥5.30 YoY; gross profit, operating income, ordinary income and net income margins were 46.2%, 20.9%, 21.7% and 15.9%, respectively.

Outlook and guidance

• FY2025 forecast: revenue ¥7,876 million (+10.5%), gross profit ¥3,660 million (+11.2%), operating income ¥1,620 million (+8.7%), ordinary income ¥1,637 million (+5.6%) and net income ¥1,146 million (+1.1%).

• FY2025 forecast EPS is ¥115.25; dividend is ¥27 per share, with a 23.4% payout ratio.

• FY2025–FY2027 targets: revenue ¥7.8 billion, ¥8.5 billion and ¥9.0 billion; operating income ¥1.6 billion, ¥1.8 billion and ¥1.9 billion, respectively.

• The mid-term plan targets operating margins of 20.6% in FY2025 and 21% in FY2026–FY2027; ROE targets are at least 13%, 13% and 14%, and payout ratios at least 23%, 24% and 25%.

• FY2025 product sales forecast: hand nutrunners +9.1% to ¥4,893 million, fastening equipment +56.3% to ¥1,300 million, nutrunners -18.8% to ¥1,070 million and servo presses +100% to ¥160 million.