Furuya Metal (7826) Q4 2024 earnings summary

Executive summary

• Transitioned to Tokyo Stock Exchange Prime Market in December 2023, marking a significant milestone.

• Net sales declined 1.2% year-over-year to JPY47.5bn, with operating income down 14.6% and net income down 21.2%.

• Inventory adjustments in key markets bottomed out, with recovery evident from Q3 onward.

• Precious metal prices remained high but trended gently downward, impacting sales and income.

• Gross profit met targets due to increased transactions, cost reductions, and forex gains despite lower sales.

Financial highlights

• FY2024 net sales: JPY47.5bn, down JPY0.6bn year-over-year; ordinary profit: JPY10.7bn, down JPY1.7bn.

• Net income for FY2024: JPY7.41bn, down 21.2% year-over-year.

• Gross profit was JPY14.67bn, down 4.6% year-over-year.

• Dividend for FY2024: JPY286 per share (including JPY30 commemorative); FY2025 forecast: JPY96 (pre-split JPY288).

• Net assets rose to JPY60.5bn, and total assets increased to JPY112.7bn.

Outlook and guidance

• FY2025 forecast: net sales JPY56bn (+17.8%), operating income JPY12bn (+22.3%), ordinary income JPY12bn (+12.3%), net income JPY8.4bn (+13.4%).

• Segment growth expected in Electronics (crucibles, SAW filters), Thin Film (HDD, semiconductors), and Fine Chemicals/Recycling (OLED, catalysts).

• Recovery in orders for crucibles, SAW filters, ruthenium targets, thermal products, and precious metal compounds is expected.

• Mid-term plan targets JPY82bn sales and JPY16.5bn ordinary profit by FY2027.