Japan Aviation Electronics Industry (6807) Q3 2024 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2024, were JPY 166.5 billion, down 2.9% year-over-year, mainly due to the end of some mobile device products and sluggish industrial demand.

• Q3 FY2024 net sales declined 9% year-over-year to JPY 53.0 billion.

• Operating profit for the nine months was JPY 11.45 billion, nearly flat year-over-year, while Q3 operating profit dropped 53% year-over-year to JPY 2.24 billion.

• Net profit for the nine months was JPY 8.72 billion, down 19% year-over-year; Q3 net profit decreased 49% year-over-year to JPY 2.09 billion.

• Ordinary profit for the nine months declined 10.6% to JPY 11.07 billion, impacted by foreign exchange losses.

Financial highlights

• Gross profit increased slightly to JPY 31.29 billion, with improved gross margin due to cost controls.

• Basic earnings per share rose to JPY 129.44 from JPY 118.23 year-over-year, despite lower net income, due to a reduction in average shares outstanding.

• Total assets decreased to JPY 223.2 billion, mainly due to lower cash and receivables.

• Net assets increased to JPY 133.4 billion, driven by profit and foreign currency translation gains.

• Equity ratio improved to 59.7% from 53.7% at the previous fiscal year-end.

Outlook and guidance

• Full-year forecast for FY2025 remains unchanged: net sales JPY 230.0 billion (+1.9% YoY), operating profit JPY 17.0 billion (+17.9%), ordinary profit JPY 16.0 billion (+8.4%), profit attributable to owners of parent JPY 12.5 billion (+2.1%), and EPS JPY 185.59.

• Dividend forecast for FY2025 is JPY 60 per share, up from JPY 55 in FY2024.