Quants Research Institute Holdings Inc (9552) Q4 2024 earnings summary

Executive summary

• Net sales rose 91.5% year-over-year to ¥16,549mn, with operating profit up 83.6% to ¥8,408mn and a 50.8% operating margin.

• M&A advisors increased by 76.8% to 320, meeting the annual hiring plan; sales per advisor exceeded plan at ¥65mn.

• Consulting business showed strong growth, with monthly sales rising and enterprise orders increasing.

Financial highlights

• Net sales: ¥16,549mn (+91.5% YoY); operating profit: ¥8,408mn (+83.6% YoY); net income: ¥5,788mn (+118.7% YoY).

• Gross profit margin declined to 72.6% (-4.0pt YoY); operating margin at 50.8% (-2.2pt YoY).

• M&A brokerage segment net sales: ¥16,301mn (+88.6% YoY); operating profit: ¥8,690mn (+89.8% YoY).

• Fees per M&A deal rose to ¥66mn; 242 closed deals (+76.6% YoY), including 26 large-scale deals.

• Cash and deposits increased to ¥10,174mn; net assets at ¥9,019mn.

Outlook and guidance

• FY2025/9 forecast: net sales ¥23,200mn (+40.2% YoY), operating profit ¥10,400mn (+23.7% YoY), net income ¥6,759mn (+16.8% YoY).

• M&A advisors targeted to reach 400–450; sales per advisor planned at ¥57–61mn.

• Consulting segment sales expected to grow to ¥1,200mn (+385.8% YoY), with consultant headcount rising to 80–100.

• Operating margin expected to decrease to 44.8% for consolidated, 50.0% for M&A brokerage.