Optorun (6235) Q4 2024 earnings summary

Executive summary

• Orders in FY12/2024 exceeded expectations, but net sales declined 12% YoY to ¥32,405 million; operating profit dropped 32.6% to ¥6,570 million due to a one-time inventory loss, while ordinary profit increased 35.4% to ¥8,190 million, supported by strong affiliate performance and lower tax rates.

• Net income attributable to shareholders rose 37.1% YoY to ¥6,351 million, surpassing plan; annual dividend increased to ¥52 per share, and 2.53 million shares were repurchased for ¥4.8 billion.

• Comprehensive income reached ¥10,043 million, up from ¥6,665 million in the prior year.

• Orders in 4Q2024 rebounded, up 59% YoY on a constant currency basis, led by optics (+51% YoY) and semiconductor optics fusion/electronic devices (+191% YoY).

Financial highlights

• FY12/2024 net sales: ¥32.4 billion (-12% YoY); operating profit: ¥6.57 billion (-32.6% YoY); ordinary income: ¥8.19 billion (+35.4% YoY); net income: ¥6.35 billion (+37.1% YoY).

• Gross profit margin declined to 44.7% (-5.4 pts YoY); operating profit margin fell to 20.3% (-6.2 pts YoY).

• Earnings per share increased to ¥145.31 from ¥106.14 YoY.

• Cash and deposits increased to ¥32.5 billion; cash and cash equivalents at year-end were ¥28,035 million, down from ¥32,976 million.

Outlook and guidance

• FY12/2025 forecast: net sales ¥38 billion (+17% YoY), operating profit ¥8.6 billion (+16% YoY), ordinary income ¥8.6 billion (+5% YoY), net income ¥6.4 billion (+1% YoY), dividend per share ¥54 (+2 yen YoY), and EPS of ¥153.03.

• Order book expected to exceed previous year by ~10%; new model ratio target above 40% of orders.

• Exchange rate assumptions: ¥145/$ and ¥21/yuan; operating profit sensitivity: -¥150 million per ¥1 appreciation vs. USD, +¥100 million per ¥0.1 appreciation vs. yuan.