Quants Research Institute Holdings Inc (9552) Q3 2024 earnings summary

Executive summary

• Net sales for FY2024/9 3Q reached ¥12,771mn, up 101.5% year-over-year, with operating profit at ¥7,019mn, up 94.4% year-over-year, and an operating margin of 55.0%.

• Ordinary profit rose 98.4% year-over-year to ¥7,020mn, and profit attributable to owners of parent increased 85.3% to ¥4,499mn.

• Number of M&A advisors increased to 289, up 87.7% year-over-year, with 320 including those who accepted offers as of April.

• The company established three new subsidiaries and shifted to a holdings structure to support future growth.

• The M&A market for SMEs in Japan continues to expand, driven by demographic trends and government policy.

Financial highlights

• Gross profit for FY2024/9 3Q was ¥9,610mn, up 90.1% year-over-year, with a gross profit margin of 75.3%.

• Net income per share was ¥76.87, up from ¥42.15 year-over-year (adjusted for stock split).

• Total assets increased to ¥13,087mn from ¥8,327mn at the previous fiscal year-end.

• Net assets rose to ¥10,225mn, with an equity-to-asset ratio of 78.1%.

• No dividends declared or forecasted for the fiscal year.

Outlook and guidance

• FY2024/9 full-year net sales forecast remains at ¥15,300mn (+77.0% YoY), with operating profit forecast at ¥7,200mn (+57.2% YoY).

• Net income per share for the full year projected at ¥79.66.

• No revision to guidance as progress rates for net sales and operating profit are 83.5% and 97.5% of plan, respectively.

• No changes to previously announced earnings forecasts; actual results may differ due to various factors.

• Asset Management Consulting and Quants Consulting to begin contributing to net sales, but only costs included in forecasts for now.