RS Technologies (3445) Q1 2024 earnings summary

Executive summary

• Q1 FY2024 net sales rose 26.4% YoY to ¥15.36bn, while operating income fell 12.6% to ¥2.63bn; parent-attributable net income increased 4.5% to ¥1.78bn.

• Comprehensive income rose 54.3% YoY to ¥7.07bn, supported by higher foreign currency translation adjustments.

Financial highlights

• Ordinary income was ¥3.59bn, down 1.3% YoY.

• EPS was ¥67.60 vs ¥64.87 YoY; diluted EPS was ¥67.23 vs ¥64.53.

Outlook and guidance

• FY2024 guidance: net sales ¥54.9bn, operating income ¥14.0bn, ordinary income ¥15.4bn and parent-attributable net income ¥7.6bn.

• H1 guidance: net sales ¥26.5bn, operating income ¥6.5bn, ordinary income ¥7.3bn and parent-attributable net income ¥3.7bn; H1 EPS guidance is ¥140.37.

• FY2024 EPS guidance is ¥288.34.

• Base-plan FY2026 targets: net sales ¥64.1bn, operating income ¥16.83bn and net income ¥8.8bn.

• Upside-plan FY2026 target is ¥131.1bn in net sales, including ¥24bn targeted LE System sales and ~¥43bn of M&A sales growth over three years.