Seiren (3569) Q1 2024 earnings summary

Executive summary

• Q1 revenue, ordinary profit and net income reached record highs for a first quarter; revenue rose 5.2% YoY to ¥32,508m.

• Operating profit was nearly flat at ¥2,908m, down 0.5% YoY, as automotive and high-fashion gains were offset by weakness in electronics and other segments.

Financial highlights

• Ordinary profit increased 6.9% YoY to ¥3,973m; net income attributable to owners rose 15.3% to ¥3,121m.

• Depreciation was ¥1,243m, up 1.5% YoY; cash-flow-basis capex was ¥1,114m versus ¥3,005m a year earlier.

• Operating profit margin was 8.9%, compared with 9.5% in the prior-year quarter.

Outlook and guidance

• FY2024 guidance was unchanged: revenue ¥135,000m (+2.0% YoY), operating profit ¥13,000m (+1.3%), ordinary profit ¥13,800m and net income ¥10,200m.

• Full-year operating margin is forecast at 9.6%; ordinary profit and net income forecasts are 10.1% and 7.5% below prior-year results, respectively.

• Forecast assumptions include ¥135 per US dollar and ¥18.5 per Chinese yuan; FY capex is ¥4,300m and depreciation ¥5,340m.