Hioki EE (6866) Q2 2023 earnings summary

Executive summary

• H1 revenue reached ¥20,334 million, a record for a first half and 28.0% of the full-year plan; operating profit rose 44.7% YoY to ¥4,545 million.

• Demand was firm in Japan and overseas, supported by decarbonization-related battery, device and energy markets; full-year guidance was maintained.

Financial highlights

• H1 orders were ¥20,186 million, 103.3% of the prior-year level; revenue was ¥20,334 million, 128.0% of the prior-year level.

• Operating profit was ¥4,545 million, up 44.7% YoY; ordinary profit was ¥4,731 million, up 39.1%; net income was ¥3,447 million, up 37.7%.

• Cost of sales rose 23.7% YoY to ¥10,729 million and SG&A rose 24.4% to ¥5,060 million; revenue growth more than offset these increases.

Outlook and guidance

• FY2023 guidance remains unchanged: revenue ¥38,900 million, operating profit ¥7,940 million, ordinary profit ¥8,080 million and net income ¥6,080 million.

• Forecast EPS is ¥445.39; planned dividend is ¥180/share, with a 40.4% payout ratio and 17.5% ROE forecast.

• The 2023–25 plan targets revenue of ¥42,000 million in 2024 and ¥46,000 million in 2025, with operating profit of ¥9,000 million and ¥10,700 million, respectively.