IFIS Japan (7833) Q2 2024 earnings summary

Executive summary

• H1 FY2024 revenue was ¥2,771m, down 4.4% YoY; operating income was ¥372m, down 12.2%, ordinary income ¥374m, and net income ¥248m, down 11.8%.

• Revenue, ordinary income and net income reached 103%, 129% and 133% of plan, respectively.

• The Japanese economy showed gradual recovery, while global uncertainty, high interest rates, yen depreciation and geopolitical risks persisted.

• Record-high Nikkei levels and growing investment trust assets supported some business segments.

Financial highlights

• Operating income margin was 13.4%; ordinary income margin was 13.5%, down from 14.7%, and net income margin was 8.9%, down from 9.7%.

• Net income attributable to owners of the parent was ¥248m versus ¥281m; comprehensive income was ¥256m versus ¥285m, and EPS was ¥25.75 versus ¥29.11.

• Expenses included outsourcing of ¥1,250m, down 5.9% YoY; labor costs of ¥870m, up 2.9%; and other expenses of ¥227m, down 8.5%.

• Total assets were ¥6,368m and net assets ¥5,498m; equity ratio was 86.3%, versus 87.5% a year earlier.

• Period-end cash was ¥5,216m, up ¥236m YoY and ¥145m from the previous year-end.

Outlook and guidance

• FY2024 forecast: revenue ¥5,700m (+2.6% YoY), operating income ¥720m (+3.0%), ordinary income ¥720m (+2%) and net income ¥465m (+3.6%); guidance unchanged.

• Annual dividend forecast is ¥19.50 per share, unchanged from prior guidance and up ¥1.00 from FY2023's ¥18.50.