ISB (9702) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue was ¥16,673m, up 4.7% YoY; operating income rose 16.9% to ¥1,537m and operating margin increased to 9.2% from 8.3%.

• H1 revenue and profits exceeded the Q2 plan; Business Industry growth and recurring-product sales supported results, while mobile infrastructure and wireless terminal work declined.

Financial highlights

• H1 ordinary income increased 17.1% to ¥1,569m; net income attributable to owners of the parent rose 46.8% to ¥1,120m.

• H1 EPS was ¥98.04 versus ¥66.94 YoY; gross profit increased to ¥4,180m from ¥3,869m.

• Q2 revenue was ¥8,142m, up 8% YoY; operating income was ¥432m, up 52%, and operating margin rose 1.5 points to 5.3%.

• Total assets were ¥18,143m and net assets were ¥12,623m at June 30, 2024; the equity ratio was 69.6%.

• Operating activities provided ¥1,066m in cash; investing and financing activities used ¥473m and ¥479m, respectively.

Outlook and guidance

• FY2024 net sales forecast is ¥33,700m, up 4.1% YoY.

• FY2024 operating profit is forecast at ¥2,470m, down 9.7% YoY; profit attributable to owners of the parent is forecast at ¥1,620m, down 9.3%.

• FY2024 EPS is forecast at ¥141.88 and the dividend at ¥46 per share, versus ¥42 in FY2023.

• FY2026 mid-term targets are revenue of ¥37.5bn and operating income of ¥2.7bn, supported by ¥3.7bn of cumulative growth investment over three years.