KOA Corporation (6999) Q4 2024 earnings summary

Executive summary

• FY2024 revenue fell to ¥648.4B from ¥750.7B; operating profit dropped to ¥33.1B from ¥102.2B as demand and orders weakened.

• FY2025 revised guidance calls for revenue of ¥719B and operating profit of ¥3.9B, above FY2024 actuals but below the original medium-term targets.

Financial highlights

• Revenue was ¥648.4B, gross profit ¥195.1B, operating profit ¥33.1B, ordinary profit ¥44.9B and net income attributable to owners ¥27.7B.

• EPS was ¥74.7; annual dividend remained ¥50 per share, with a 67.0% payout ratio.

• Operating cash flow was ¥71B, investing cash flow -¥174B and financing cash flow ¥123B; cash and cash equivalents ended at ¥292B.

Outlook and guidance

• FY2025 forecast: revenue ¥719B, operating profit ¥39B, operating margin 5.4% and ROE 4.1%; the forecast is below original targets of ¥870B revenue and ¥110B operating profit.

• FY2025 revised targets assume a ¥145/US$ exchange rate versus the original ¥110 assumption; management expects automotive electrification demand for electronic components to remain steady.

• Medium-term targets were revised after prolonged customer inventory adjustments, weak global recovery including China, and changes to automotive production forecasts.