JAPAN MATERIAL (6055) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 4.4% YoY to ¥48,592m, while operating profit fell 30.1% to ¥7,759m and net income fell 28.1% to ¥5,681m.

• Lower NAND-related customer investment and production weighed on earnings; FY2025 guidance targets higher revenue and profit as semiconductor demand improves.

Financial highlights

• FY2024 revenue was ¥48,592m, operating profit ¥7,759m (down 30.1%), ordinary profit ¥8,230m (down 27.2%), and net income attributable to owners ¥5,681m (down 28.1%).

• Operating cash flow was ¥4,227m; investing cash flow was -¥5,099m and financing cash flow -¥2,133m. Cash and cash equivalents ended the year at ¥5,367m.

• Total assets were ¥56,427m and net assets ¥47,920m at March 31, 2024; liabilities were ¥8,506m.

• Comprehensive income was ¥5,929m, versus ¥8,155m in the prior year.

Outlook and guidance

• FY2025 guidance: revenue ¥50,000m (+2.9%), operating profit ¥10,000m (+28.9%), ordinary profit ¥10,000m (+21.5%), and net income ¥7,000m (+23.2%).

• Operation sales are forecast at ¥36,550m (+19.3%), or 73.1% of sales; initial sales are forecast at ¥13,450m (-25.1%).

• Power semiconductor and generative AI demand is expected to remain firm, while inventory adjustments and improving semiconductor supply-demand conditions support the outlook.

• Plans include expanding TFM operations and technician capacity, pursuing customer facility investment orders, and growing digital signage and graphics products.

• Long-term target is for operation sales to reach 85% of revenue, building recurring income through fab services and maintenance.