Net One Systems (7518) Q2 2025 earnings summary

Executive summary

• Bookings, revenue, and operating income for H1 FY24 rose year-over-year and exceeded projections, driven by strong demand for ICT, network, security, and cloud solutions.

• Net sales rose 8.1% year-over-year to ¥100,657 million for the six months ended September 30, 2024.

• Operating profit increased 41.2% year-over-year to ¥8,960 million, with ordinary profit up 42.1% to ¥8,812 million.

• Profit attributable to owners of parent surged 52.1% year-over-year to ¥6,402 million.

• FY24 full-year forecast remains unchanged, with continued focus on improving bookings and service profitability.

Financial highlights

• H1 FY24 bookings: JPY 108.7bn (+18.3% YoY); revenue: JPY 100.6bn (+8.1% YoY); operating income: JPY 8.96bn (+41.2% YoY).

• H1 FY24 gross profit margin: 25.9% (+0.9pts YoY); SG&A expenses: JPY 17.1bn (+1.0% YoY).

• H1 FY24 profit attributable to owners: JPY 6.4bn (+52.1% YoY); EPS: JPY 80.73 (+57.2% YoY).

• Total assets as of Sep 30, 2024: JPY 167.2bn (+1.4% vs Mar 31, 2024); cash and deposits: JPY 26.1bn (-18.7%).

• Net assets grew to ¥78,913 million, with an equity ratio of 47.1%.

Outlook and guidance

• FY24 forecast: bookings JPY 225bn (+11.7% YoY), revenue JPY 220bn (+7.3% YoY), operating income JPY 21bn (+7.5% YoY), profit attributable to owners JPY 14.4bn (+5.0% YoY).

• Full-year EPS forecasted at ¥181.59.

• Progress toward full-year revenue target at 68.6% by end-Q2.