Japan Investment Adviser (7172) Q4 2024 earnings summary

Executive summary

• Net sales rose 42.7% year-over-year to 31,129 million yen, with operating profit up 120.5% to 12,110 million yen and profit attributable to owners of parent up 241.4% to 8,055 million yen.

• The Operating Lease Business drove growth, with sales up 47.5% year-over-year, record equity sales, and new product launches such as air ambulances.

• The company exceeded its initial year targets for the mid-term plan and forecasts further growth in FY2025.

• Non-operating foreign exchange gains of 4.1 billion yen were recorded in Q4 due to a weaker yen, offsetting previous losses from Q3.

• Dividend policy revised to target a payout ratio of 50% or higher from FY2025.

Financial highlights

• Gross profit increased to 20,833 million yen from 12,187 million yen year-over-year.

• Ordinary profit surged 217.1% to 11,635 million yen, and comprehensive income rose 220.5% to 9,546 million yen.

• Net assets per share increased to 1,105.22 yen from 791.33 yen, and net profit per share rose to 133.19 yen from 39.03 yen.

• Cash and cash equivalents at year-end were 51,494 million yen, up from 28,186 million yen.

• Gross profit margin improved to 66.9% from 55.9% in the prior year.

Outlook and guidance

• FY2025 net sales are forecast at 36,870 million yen, with operating profit of 18,120 million yen and net income of 10,500 million yen.

• Equity sales in the Operating Lease Business are projected to reach 150 billion yen, one year ahead of the mid-term plan.

• Real estate fractional ownership product sales are forecast at 24 billion yen.

• Dividend forecast for FY2025 is 87 yen per share, with a payout ratio of 50.1%.

• The company aims for a net income of 25 billion yen by FY2026.