Seiren (3569) Q4 2024 earnings summary

Executive summary

• FY2024 marked a third consecutive year of revenue and profit growth, with record-high earnings for the third consecutive year.

• Revenue was ¥141,915 million, operating profit ¥14,068 million, ordinary profit ¥16,214 million, and net income attributable to owners of the parent ¥12,156 million.

Financial highlights

• Revenue rose 7.2% YoY; operating profit increased 9.6%, ordinary profit 5.7%, and net income 10.3%.

• Operating margin improved to 9.9% from 9.7%; results were close to the prior revenue forecast, while operating profit and net income exceeded forecast.

• Depreciation was ¥5,455 million; cash-flow-basis capital investment was ¥4,302 million, down 48.5% YoY.

Outlook and guidance

• FY2025 forecast: revenue ¥147,000 million (+3.6%), operating profit ¥15,500 million (+10.2%), ordinary profit ¥16,500 million (+1.8%), and net income ¥12,200 million (+0.4%); record highs expected.

• Forecast operating margin is 10.5%, versus 9.9% in FY2024; assumed exchange rates are ¥145 per US dollar and ¥20.0 per Chinese yuan.

• FY2025 depreciation is forecast at ¥5,660 million and capital investment at ¥6,500 million, up 51.1% YoY.

• FY2025 annual dividend forecast is ¥60 per share, versus ¥53 for FY2024; forecast payout ratio is 27.21%.

• Medium-term plan targets a 11.5% operating margin by FY2027.