Shinko Electric Industries (6967) Q4 2024 earnings summary

Executive summary

• FY2023 net sales fell 27% YoY to ¥210.0 billion; operating profit declined 68% to ¥24.8 billion and profit attributable to owners of parent fell 66% to ¥18.6 billion.

• Weakness across semiconductor-related products reflected sluggish PC, server, and smartphone demand, inventory adjustments, and US export restrictions; FY2024 forecasts call for a recovery in sales and profit.

Financial highlights

• FY2023 ordinary profit was ¥27.3 billion, down 65% YoY; EPS was ¥137.73, versus ¥403.32 in FY2022.

• Total assets were ¥393.8 billion and net assets ¥265.0 billion at FY2023 year-end, versus ¥386.9 billion and ¥251.0 billion in FY2022; equity ratio rose to 67% from 65%.

Outlook and guidance

• FY2024 forecast: net sales ¥250.0 billion, up 19%; operating profit ¥44.0 billion, up 77%; ordinary profit ¥45.0 billion, up 65%; profit attributable to owners of parent ¥30.0 billion, up 61%.

• Forecast operating and ordinary profit margins are each 18%; profit attributable to owners of parent margin is 12%.

• FY2024 forecast assumes ¥135 per US dollar, versus ¥143 in FY2023; forecasts are based on currently available information and actual results may differ.