Nittoseiko Co (5957) Q2 2024 earnings summary

Executive summary

• Net sales for 2Q FY2024 were ¥22,394 million, down 0.2% year-over-year, with operating income up 15.1% to ¥1,494 million and net income up 20.8% to ¥1,007 million.

• Ordinary profit increased 9.0% to ¥1,610 million, and comprehensive income rose to ¥1,852 million from ¥1,644 million.

• Profitability improved due to price pass-through and strong shipments of high value-added analytical instruments, despite sluggish demand in some segments.

• Overseas sales increased, particularly in China and Europe, driven by automotive and analytical instrument demand.

Financial highlights

• Gross profit rose 4.7% year-over-year to ¥5,358 million, with gross margin improving to 23.9%.

• Earnings per share for the six months was ¥27.56, up from ¥22.57 in the prior year.

• Total assets as of June 30, 2024, were ¥54,703 million, up from ¥53,344 million at year-end 2023.

• Net assets increased to ¥37,871 million, with an equity ratio of 61.3%.

• Cash and deposits at 2Q-end were ¥9,615 million, up 8.7% from the previous year-end; cash and cash equivalents at period end were ¥8,584 million.

Outlook and guidance

• FY2024 full-year net sales forecast is ¥48,200 million (+7.7% YoY), with operating profit expected at ¥3,300 million (+26.2% YoY) and net income at ¥2,100 million (+21.1% YoY).

• Full-year EPS forecast is ¥57.46.

• Dividend forecast for 2024 is ¥19.00 per share, up from ¥18.00 in 2023; progressive dividend policy maintained.

• Recovery in capital investment and demand is expected in the second half, especially in automotive, household goods, and energy sectors.