HIRAYAMA HOLDINGS (7781) Q1 2023 earnings summary

Executive summary

• Q1 FY2023 net sales rose 17.6% YoY to ¥7,719m; operating profit increased 126.1% to ¥284m and parent-attributable profit rose 138.3% to ¥200m.

• Higher manufacturing demand and staffing orders, improved outsourcing-site operations, and more efficient SG&A supported growth despite component shortages and higher costs.

Financial highlights

• Gross profit was ¥1,321m versus ¥1,118m YoY; SG&A was ¥1,037m versus ¥992m.

• Ordinary profit rose 148.0% YoY to ¥312m, including ¥22m of foreign-exchange gains; income taxes were ¥113m versus ¥42m.

• Comprehensive income was ¥197m versus ¥88m YoY; net income per share was ¥25.86 after the 2-for-1 stock split.

Outlook and guidance

• FY2023 forecast unchanged: net sales ¥32,000m (+14.4% YoY), operating profit ¥900m (+30.0%), ordinary profit ¥900m (+16.0%), and parent-attributable profit ¥520m (+27.0%).

• Forecast EPS is ¥71.11 on the post-split share basis; Q1 sales and earnings were mostly in line with the initial plan.

• Outlook anticipates substantial orders as Japanese manufacturing recovers and newly hired graduates take assignments; actual results may differ due to multiple factors.