Seiren (3569) Q2 2024 earnings summary

Executive summary

• H1 FY2024 revenue, operating profit, ordinary profit and net income all reached record highs; revenue rose 10.1% YoY and operating profit rose 16.7%.

• Full-year outlook was raised, with record revenue and profit expected across all four measures.

Financial highlights

• H1 revenue was ¥66,664 million, up ¥6,099 million or 10.1% YoY; operating profit was ¥6,027 million, up 16.7%.

• Ordinary profit was ¥8,037 million, up 13.8% YoY; net income attributable to owners of parent was ¥5,757 million, up 11.3%.

• Depreciation was ¥2,578 million, up 1.9%; cash-flow-basis capital expenditure was ¥2,176 million, down ¥2,344 million YoY.

• Foreign exchange translation added ¥8.7 billion to total assets; cash increased ¥4,982 million from FY2023 year-end to ¥43,764 million.

Outlook and guidance

• FY2024 revenue forecast increased to ¥140,000 million from ¥135,000 million, +5.8% YoY and +3.7% versus prior guidance.

• Full-year operating profit forecast is ¥13,300 million, ordinary profit ¥15,500 million and net income ¥11,100 million; all are expected to reach records.

• Forecast operating margin is 9.5%; assumptions include ¥139 per US dollar and ¥19.5 per Chinese yuan.

• FY2024 forecast depreciation is ¥5,280 million and cash-flow-basis capital expenditure is ¥5,580 million, versus ¥8,354 million in the prior year.