HIRAYAMA HOLDINGS (7781) Q2 2023 earnings summary

Executive summary

• H1 FY6/23 net sales rose 17.6% YoY to ¥15,769 million; operating profit increased 49.6% to ¥585 million, with all business segments reporting higher sales and profit.

• Earnings exceeded plan, supported by Genba Kaizen, high-rate orders and more efficient SG&A; the full-year outlook remained unchanged.

Financial highlights

• H1 net sales were ¥15,769 million, gross profit ¥2,774 million and operating profit ¥585 million, versus ¥13,412 million, ¥2,400 million and ¥391 million a year earlier.

• Ordinary profit increased 52.1% YoY to ¥616 million, including ¥17 million in foreign exchange gains; profit attributable to owners of parent rose 83.2% to ¥389 million.

• Income taxes were ¥227 million; net income per share was ¥53.26, compared with ¥31.01 in H1 FY6/22, on a post-split basis.

Outlook and guidance

• FY6/23 guidance remains unchanged: net sales ¥32,000 million, operating profit ¥900 million, ordinary profit ¥900 million, parent-attributable profit ¥520 million and EPS ¥71.11.

• H1 achieved 49.3% of full-year sales guidance, 65.0% of operating profit, 68.5% of ordinary profit and 74.9% of parent-attributable profit.

• Outlook anticipates manufacturing recovery in Japan and job assignments for newly hired graduates; semiconductor and component shortages continue to delay some production.