Japan Investment Adviser (7172) Q2 2024 earnings summary

Executive summary

• Net sales for H1 FY2024 rose 67.5% year-over-year to ¥14,975 million, with operating profit up 92.8% to ¥6,171 million and profit attributable to owners of parent up 236.0% to ¥5,701 million.

• Strong performance in the operating lease business, with sales up 64.4% year-over-year, and significant growth in renewable energy, real estate, and private equity investment businesses.

• Equity sales in the operating lease business reached a record high for the half-year, with robust deal structuring and sufficient inventory to meet investor demand.

• Comprehensive income increased 175.4% year-over-year to ¥7,604 million.

• Diversification efforts underway in renewable energy, real estate, and private equity investment businesses.

Financial highlights

• Ordinary profit surged 219.1% year-over-year to ¥8,335 million.

• Gross profit margin was 67.2%, down from 74.1% in H1 FY2023.

• Net profit per share for the first half was ¥94.26, reflecting the impact of a rights offering.

• Total assets increased to ¥245,156 million from ¥211,750 million at year-end 2023.

• Cash and cash equivalents at period-end rose to ¥42,744 million, up ¥14,557 million from year-end 2023.

Outlook and guidance

• FY2024 full-year net sales forecast revised upward to ¥28,900 million, with operating profit of ¥10,500 million and profit attributable to owners of parent at ¥7,100 million.

• Net income per share for the full year is projected at ¥117.39.

• Non-operating foreign exchange gain for the full year estimated at ¥1.7 billion, assuming a rate of 155 yen per US dollar.

• Three-year plan targets net profit of ¥25 billion and net profit ratio of 36% by FY2026.