Riken Keiki (7734) Q2 2025 earnings summary

Executive summary

• Net sales for the first half of FY2024 increased by 5.6% year-over-year to ¥23,934 million, driven by strong portable-type detector sales, especially in North America, while operating profit decreased by 5.9% due to higher personnel costs.

• Net profit attributable to owners of parent declined 21.2% to ¥3,583 million.

• The company operates in a single segment: manufacture and sale of industrial measurement devices, with portable gas detection devices showing strong growth.

• Economic environment remains uncertain due to global instability and rising prices, despite some recovery in Japan and resumption of capital investment in the domestic semiconductor industry.

Financial highlights

• Net sales: ¥23,934 million, up 5.6% year-over-year.

• Operating profit: ¥5,499 million, down 5.9% year-over-year.

• Ordinary profit: ¥5,170 million, down 20% year-over-year.

• Net profit: ¥3,583 million, down 21.2% year-over-year.

• Basic EPS: ¥76.93, down from ¥97.67, reflecting a 2-for-1 share split.

• Dividend per share: ¥20, unchanged year-over-year.

• Comprehensive income dropped 23.6% year-over-year to ¥4,889 million.

• Cash and cash equivalents at period-end were ¥17,415 million, up ¥248 million from March 31, 2024.

Outlook and guidance

• Full-year forecast maintained: net sales ¥48,000 million (+5.3% YoY), operating profit ¥11,800 million (+2.8%), net profit ¥9,000 million (+0.2%), EPS ¥193.22.

• Dividend forecast for FY2025 is ¥40 per share, reflecting the share split.

• Semiconductor industry sales showed signs of recovery in the latter part of 1H FY2024, with expectations for further recovery after the beginning of next year.