Sankyu (9065) Q2 2024 earnings summary

Executive summary

• H1 FY2024 revenue was ¥2,772bn, down ¥121bn YoY; operating profit was ¥169bn, down ¥22bn, reflecting weaker logistics and machinery results.

• FY2024 guidance was revised down: revenue to ¥5,525bn and operating profit to ¥335bn; logistics accounts for most of the reduction.

Financial highlights

• H1 revenue ¥2,772bn vs ¥2,893bn YoY; operating profit ¥169bn vs ¥191bn; ordinary profit ¥181bn vs ¥218bn; net income attributable to owners ¥115bn vs ¥139bn.

• H1 logistics revenue declined ¥97bn to ¥1,413bn and operating profit fell ¥5bn to ¥44bn; machinery revenue declined ¥37bn to ¥1,226bn and operating profit fell ¥19bn to ¥114bn.

• Other-segment H1 revenue increased ¥13bn to ¥133bn and operating profit rose ¥2bn to ¥10bn.

Outlook and guidance

• Revised FY2024 forecast: revenue ¥5,525bn, operating profit ¥335bn, ordinary profit ¥345bn and net income ¥230bn, respectively ¥155bn, ¥35bn, ¥25bn and ¥15bn below initial plans.

• Revised H2 forecast: revenue ¥2,754bn and operating profit ¥166bn; ordinary profit ¥164bn and net income ¥115bn.

• Logistics FY revenue and operating profit forecasts were cut by ¥185bn and ¥37bn to ¥2,824bn and ¥99bn; machinery forecasts were ¥2,441bn and ¥220bn.

• H2 logistics outlook assumes container volumes remain near H1 levels, with lower export/import cargo; machinery outlook cites more chemical maintenance work and timing shifts in steel projects.