Hirose Electric (6806) Q2 2024 earnings summary

Executive summary

• Sales for the first half of FY2024 increased 14% year-over-year to JPY 94,519 million, driven by strong performance in smartphone, consumer/mobile equipment, and automotive/mobility-related segments, despite a delayed recovery in the general industrial market.

• Operating profit rose 29.2% year-over-year to JPY 22,216 million, with an operating profit ratio of 23.5%.

• Net profit attributable to owners of parent surged 39.2% year-over-year to JPY 17,531 million.

• Orders increased 29.4% year-over-year and 1.3% quarter-over-quarter.

• Expansion of global business, especially in smartphone, automotive, and industrial markets, supported growth.

Financial highlights

• Sales reached JPY 94,519 million (+14% YoY), operating profit JPY 22,216 million (+29.2% YoY), and net profit JPY 17,531 million (+39.2% YoY).

• Operating profit ratio improved by 2.8 points to 23.5%.

• Earnings per share rose to JPY 518.17 from JPY 365.87 YoY.

• Profit before tax increased 21.2% YoY to JPY 23,846 million.

• COGS and SGA ratios improved by 0.9 and 1.4 points, respectively.

Outlook and guidance

• Full-year sales/revenue forecast revised upward to JPY 182,000 million (+10% YoY), with operating profit forecast at JPY 38,000 million (+11.7% YoY).

• Net profit forecast for the year raised to JPY 30,000 million (+13.3% YoY).

• Dividend per share forecast increased to JPY 490.

• Basic earnings per share forecast for the year: JPY 886.68.

• Annual growth rate forecast by segment: smartphone +20%, consumer/mobile equipment +28%, automotive/mobility-related +15%, general industrial -10%.