HIRAYAMA HOLDINGS (7781) Q4 2023 earnings summary

Executive summary

• FY6/23 net sales rose 13.2% YoY to ¥31,674m; operating profit rose 29.1% to ¥893m and profit attributable to owners of parent rose 34.1% to ¥549m.

• Growth reflected manufacturing recovery and staffing demand, higher-rate orders, price revisions, job-site improvements and more efficient SG&A.

Financial highlights

• Ordinary profit increased 22.2% to ¥949m, including ¥8m subsidy income and ¥28m foreign-exchange gains; net income included ¥3.9m impairment losses.

• Gross profit was ¥5,231m versus ¥4,803m; SG&A increased to ¥4,338m from ¥4,111m.

• Comprehensive income rose 33.5% to ¥546m; EPS was ¥74.99 versus ¥59.04, reflecting the 2-for-1 stock split adjustment.

Outlook and guidance

• FY6/24 forecast: net sales ¥34,300m (+8.3% YoY), operating profit ¥1,200m (+34.3%), ordinary profit ¥1,190m (+25.5%) and parent-attributable profit ¥700m (+27.5%).

• Outlook assumes manufacturing recovery, strong orders and assignments for new graduates; hiring and training for specialized roles are planned to expand available skilled personnel.

• Forecast includes Hirayama GL, which joined the business on July 18, 2023; actual results may differ from forecasts.