KOA Corporation (6999) Q2 2024 earnings summary

Executive summary

• H1 FY2024 revenue was ¥33.53bn, down 11.7% YoY; operating profit fell 74.1% to ¥1.45bn as resistor-market demand weakened.

• Priorities include expanding resistor production capacity, improving digital and supply-chain capabilities, and developing sensor-related businesses.

Financial highlights

• Revenue was ¥33.53bn versus ¥37.96bn; gross profit was ¥9.56bn versus ¥13.18bn, while SG&A rose to ¥8.11bn from ¥7.57bn.

• Operating profit was ¥1.45bn, down ¥4.16bn YoY; ordinary profit was ¥2.30bn, down ¥4.21bn; net income attributable to owners was ¥1.52bn, down ¥2.99bn.

• H1 operating cash flow was ¥3.3bn, investing cash flow was -¥4.8bn, financing cash flow was +¥6.4bn, and cash and equivalents were ¥31.7bn.

Outlook and guidance

• The full-year consolidated outlook was revised; the presentation highlighted uncertainty around the pace of customer inventory adjustments and other market risks.

• FY2024 consolidated plans listed capital expenditure of ¥17.3bn, depreciation of ¥4.8bn, and R&D spending of ¥3.3bn.

• The medium-term plan targets growth in EV and mobility and industrial markets through 2030, alongside new business areas and phased capacity expansion.