JBCC Holdings (9889) Q1 2025 earnings summary

Executive summary

• Revenue rose 10.7% year-over-year to ¥18,118 million, with operating profit up 34.9% and net profit attributable to shareholders up 31.7%.

• Growth driven by strong performance in cloud and security businesses, as well as hardware refreshes and a rebound in the systems segment.

• Cloud and security services achieved record-high quarterly sales and orders, reflecting robust demand and successful market initiatives.

• The company launched its new mid-term plan, focusing on cloud, security, rapid development, and began offering AI support services.

Financial highlights

• Operating income increased 34.9% year-over-year to ¥1,536 million, with an operating margin of 8.5% (+1.5pts YoY).

• Net income attributable to parent rose 31.7% year-over-year to ¥1,120 million, with a net margin of 6.2% (+1.0pts YoY).

• EPS for the quarter was ¥72.34, compared to ¥54.04 in the prior year.

• Comprehensive income increased to ¥1,231 million, up 30.9% year-over-year.

• Progress rates against full-year forecasts: revenue 27.2%, operating income 30.1%, net income 31.2%.

Outlook and guidance

• Full-year revenue forecast is ¥66,500 million (+2.0% year-over-year), with operating profit of ¥5,200 million (+14.3%).

• No changes to previously announced guidance; management expects continued growth in cloud and security.

• Targeting a stock business ratio of 60% of total revenue by FY2027, up from 41% in FY2024 and 47% forecast for FY2025.

• Full-year EPS forecast is ¥231.86.