RS Technologies (3445) Q2 2024 earnings summary

Executive summary

• H1 revenue rose 15.1% YoY to ¥30,068m; operating income fell 4.9% to ¥6,082m, while ordinary income increased 2.0% to ¥7,896m.

• Parent-attributable interim net income rose 3.0% to ¥3,833m; reclaimed wafers and semiconductor-related equipment and materials drove sales growth, while prime wafer results remained weak.

Financial highlights

• Revenue was ¥30,068m versus ¥26,126m YoY; gross profit was ¥9,149m versus ¥9,045m.

• Operating income was ¥6,082m versus ¥6,395m; ordinary income was ¥7,896m versus ¥7,741m.

• Parent-attributable interim net income was ¥3,833m versus ¥3,722m; basic EPS was ¥145.42 versus ¥141.64.

• Comprehensive income increased 55.4% to ¥16,533m.

Outlook and guidance

• FY2024 guidance unchanged: revenue ¥54,900m, operating income ¥14,000m, ordinary income ¥15,400m and parent-attributable net income ¥7,600m; EPS guidance is ¥288.34.

• Base-plan FY2026 targets: sales ¥64,100m, operating income ¥16,830m and net income ¥8,800m.

• Upside plan targets ¥131,100m sales by 2026, including LE System growth and M&A; LE System targets ¥24bn sales and a 20% operating margin.

• Management expects semiconductor market recovery from H2 2024; capacity investment and new-market and customer development support growth plans.