Seiren (3569) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 revenue reached a record ¥103,864 million, up 6.7% YoY; operating income was nearly level with the prior-year record at ¥9,971 million, down 0.5%.

• Full-year forecasts were raised; revenue, operating income, ordinary income and net income are each forecast to reach record highs.

Financial highlights

• Q3 ordinary income was ¥11,965 million, down 5.5% YoY; net income attributable to owners of the parent was ¥8,719 million, down 6.8%.

• Depreciation was ¥3,851 million, down 0.8% YoY; cash-flow-basis capital expenditure was ¥2,979 million, down 52.2%.

• Operating income was supported by automotive materials (+¥792 million) and high fashion (+¥215 million); electronics (-¥635 million) and medical (-¥285 million) weighed on results.

• Excluding the ¥1,178 million decline in foreign-exchange gains, non-operating factors included higher subsidy income (+¥272 million) and improved financial income (+¥333 million).

Outlook and guidance

• FY2024 revenue forecast was raised to ¥142,000 million, up 7.3% YoY and 1.4% above the previous forecast; operating income was raised to ¥13,600 million, up 6.0% YoY.

• Ordinary income is forecast at ¥16,100 million, up 4.9% YoY and 3.9% above the previous forecast; attributable net income at ¥11,400 million, up 3.4% YoY and 2.7% above forecast.

• Forecast operating margin is 9.6%, versus 9.7% in FY2023; assumptions are ¥141 per US dollar and ¥19.8 per Chinese yuan.

• FY2024 depreciation is forecast at ¥5,230 million and capital expenditure at ¥5,200 million; overseas capex is ¥2,600 million, including ¥960 million for SHU in Hungary.