Hibiya Engineering (1982) Q2 2024 earnings summary

Executive summary

• H1 FY3/24 orders rose 36.2% YoY to ¥50,754 million, led by data-center and large redevelopment projects; revenue increased 15.4% to ¥33,010 million.

• Operating profit grew 29.6% to ¥976 million and profit attributable to owners of parent rose 26.7% to ¥956 million.

• Results were nearly in line with the fiscal-year-start forecast; full-year guidance remained unchanged.

Financial highlights

• H1 gross profit was ¥4,915 million, up 4.5% YoY; SG&A declined to ¥3,939 million from ¥3,949 million.

• Gross profit ratio was 14.9%, down 1.5 percentage points YoY; cost of sales rose 17.5% to ¥28.0bn.

• Comprehensive income increased to ¥2,653 million from ¥728 million, including a ¥1,633 million valuation gain on available-for-sale securities.

• Total assets fell ¥10,968 million to ¥83,719 million; liabilities declined ¥12,303 million to ¥17,670 million, while net assets reached ¥66,049 million.

Outlook and guidance

• FY3/24 forecasts unchanged: orders ¥86.5bn, net sales ¥85.0bn, operating profit ¥5.0bn, ordinary profit ¥5.5bn and parent profit ¥3.8bn.

• FY3/24 EPS forecast is ¥165.60, unchanged from the May 11, 2023 announcement.