KOA Corporation (6999) Q2 2023 earnings summary

Executive summary

• H1 FY2023 revenue was ¥37.96bn, operating income ¥5.61bn and net income attributable to owners ¥4.52bn; each exceeded the prior-year half-year result.

• Operating margin rose to 14.8% from 11.0% YoY, alongside stronger resistor demand and growth across regions.

Financial highlights

• Revenue increased to ¥37.96bn from ¥31.66bn YoY; gross profit was ¥13.18bn and SG&A was ¥7.57bn.

• Operating income rose to ¥5.61bn from ¥3.47bn; ordinary income reached ¥6.50bn from ¥3.71bn.

• Net income attributable to owners was ¥4.52bn versus ¥2.60bn in the prior-year half; H1 EPS was ¥121.8.

Outlook and guidance

• FY2023 consolidated capital expenditure forecast: ¥13.1bn; depreciation forecast: ¥3.8bn; R&D forecast: ¥2.7bn.

• Medium-term plan targets doubled thick-film and thin-film chip resistor production capacity by 2030 through existing-site expansion and new production locations.

• A development and production building begun in Oct 2022 is scheduled for completion in Mar 2024.