ShinMaywa Industries (7224) Q1 2025 earnings summary

Executive summary

• Achieved record-high first quarter orders received and net sales, with all segments posting profit increases year-over-year; orders received rose 13.7% to ¥72.5 billion, net sales up 9.6% to ¥57.4 billion, and outstanding orders up 15.0% to ¥307.2 billion.

• Operating profit surged 188.8% year-over-year to ¥1.84 billion, ordinary profit rose 110.2% to ¥2.56 billion, and profit attributable to owners increased 133.1% to ¥1.51 billion.

• Comprehensive income for the quarter was ¥1.69 billion, up 4.9% year-over-year.

• Progress on internal plans is steady, with operating profit exceeding expectations.

Financial highlights

• Net sales for the quarter were ¥57.4 billion (+9.6% YoY), operating profit ¥1.84 billion (+188.8% YoY), ordinary profit ¥2.56 billion (+110.2% YoY), and profit attributable to owners ¥1.51 billion (+133.1% YoY).

• Basic earnings per share increased to ¥22.87 from ¥9.82 year-over-year.

• Outstanding orders reached ¥307.2 billion (+15.0% YoY).

• Equity-to-asset ratio improved to 42.2% from 41.1% at prior year-end.

• Free cash flow improved to -¥3.4 billion from -¥10.2 billion YoY.

Outlook and guidance

• FY2024 net sales and profit forecasts unchanged: net sales ¥285 billion (+10.9% YoY), operating profit ¥13.0 billion (+10.5%), ordinary profit ¥12.2 billion (+0.8%), profit attributable to owners ¥7.5 billion (+3.0%).

• Orders received forecast revised upward to ¥280 billion.

• Annual dividend forecast is ¥50 per share, up from ¥47 in the previous year.

• Each ¥1 depreciation in USD/JPY expected to boost operating profit by ¥120 million.