Hirose Electric (6806) Q3 2024 earnings summary

Executive summary

• Sales for FY2024 1Q–3Q rose 15.4% year-over-year to JPY 144,422 million, with operating profit up 25.6% to JPY 34,215 million and net profit up 33.2% to JPY 27,583 million, driven by strong smartphone, consumer, and automotive markets.

• New production facilities in Japan and Korea began operations, supporting expansion in high-value product segments.

• Automotive/Mobility-related market remained robust, while General Industrial showed no clear recovery and Smartphone/Consumer segments stayed strong despite slight sequential declines.

Financial highlights

• Sales reached JPY 144,422 million, up JPY 19,260 million year-over-year, with operating profit margin at 23.7% and net profit margin at 19.1%.

• Basic earnings per share rose from JPY 602.04 to JPY 815.25.

• Total assets increased to JPY 422,293 million, and total equity rose to JPY 375,891 million as of December 31, 2024.

• COGS and SGA ratios improved by 1.2 and 0.2 points, respectively.

• Cash and cash equivalents decreased by JPY 9,431 million due to capital investment and dividend payments.

Outlook and guidance

• Full-year sales forecast revised upward to JPY 190,000 million, with operating profit expected at JPY 42,000 million and net profit at JPY 32,000 million.

• Basic earnings per share for the year ending March 31, 2025, projected at JPY 945.79.

• Dividend per share forecast raised to JPY 490.

• Growth in smartphone and consumer segments expected to exceed previous forecasts.