Hamai Industries (6497) Q1 2025 earnings summary

Executive summary

• Revenue increased by 10.7% year-over-year to ¥3,408 million for the first quarter ended March 31, 2025, driven by higher sales in LPG container valves and brass scrap, despite ongoing cost pressures and mixed segment performance.

• Operating profit declined slightly by 0.5% year-over-year to ¥342 million, as higher raw material costs and weaker subsidiary performance offset revenue gains.

• Net income attributable to shareholders fell 23.5% year-over-year to ¥202 million, impacted by foreign exchange losses at a subsidiary.

Financial highlights

• Gross profit rose to ¥636 million from ¥617 million year-over-year, but operating margin compressed due to increased cost of goods sold.

• EPS for the quarter was ¥30.29, down from ¥39.68 in the prior year.

• Total assets stood at ¥21,308 million, with net assets at ¥16,078 million and an equity ratio of 75.5%.

• Comprehensive income dropped to ¥168 million from ¥591 million year-over-year.

Outlook and guidance

• Full-year revenue is forecast at ¥12,300 million, up 1.7% year-over-year, with operating profit expected to decline 4.6% to ¥1,150 million.

• Net income for the year is projected at ¥800 million, with EPS of ¥134.25.

• No changes have been made to previously announced guidance.