Koa Shoji Holdings (9273) Q4 2024 earnings summary

Executive summary

• FY24 revenue and major profit measures reached records: revenue rose 0.4% to ¥22,134m, operating profit rose 3.1% to ¥4,382m, and net income attributable to owners increased 9.6% to ¥2,946m.

• FY25 guidance targets ¥23,350m revenue and ¥4,620m operating profit; FY30 targets are ¥40,000m revenue and ¥8,000m operating profit.

Financial highlights

• FY24 gross profit was ¥6,639m, ordinary profit ¥4,368m, and net income attributable to owners ¥2,946m; increases were 3.1%, 6.7%, and 9.6%, respectively.

• Revenue rose ¥82m: pharmaceutical sales increased ¥510m to ¥8,399m, offset by a ¥543m decline in API sales to ¥15,455m.

• FY24 capex was ¥1,348m, versus ¥412m; depreciation was ¥726m and R&D expense was ¥132m.

• Total assets were ¥32,004m, net assets ¥25,051m, and ending cash and cash equivalents ¥13,195m.

• Earnings per share rose to ¥74.14 from ¥67.83; comprehensive income was ¥2,970m.

Outlook and guidance

• FY25 forecast: revenue ¥23,350m (+5.5%), gross profit ¥7,270m (+9.5%), operating profit ¥4,620m (+5.4%), and net income ¥3,080m (+4.5%).

• FY25 segment forecasts: API revenue ¥15,890m and operating profit ¥2,850m; pharmaceuticals revenue ¥8,660m and operating profit ¥1,790m.

• FY25 capex is budgeted at ¥3,333m, R&D at ¥192m, and depreciation at ¥706m.

• FY25 dividend is forecast at ¥14 per share; the policy is to increase dividends in principle each year.

• FY30 targets are consolidated revenue of ¥40,000m and operating profit of ¥8,000m, with the two segments aiming for similar operating-profit contributions.