Sinfonia Technology (6507) Q4 2024 earnings summary

Executive summary

• FY2023 revenue and profit declined as semiconductor-related demand weakened and prior-year social infrastructure orders did not recur; profit nevertheless ranked second-highest historically.

• FY2024 plans assume semiconductor demand recovers in H2, with growth in orders, revenue and profit supported by product development and investment in growth markets.

Financial highlights

• FY2023 orders were ¥108.78bn, down 13.0% YoY; revenue was ¥102.66bn, down 5.7%.

• Operating profit was ¥10.01bn, down 13.9%; ordinary profit was ¥10.53bn, down 12.2%; net income attributable to owners of the parent was ¥7.51bn, down 7.3%.

• R&D expense was ¥3.42bn, down 12.2%; capital expenditure was ¥6.07bn, up 17.6%.

Outlook and guidance

• FY2024 guidance: orders ¥125.0bn (+14.9%), revenue ¥110.0bn (+7.2%), operating profit ¥11.5bn (+14.9%), ordinary profit ¥11.5bn (+9.2%) and net income ¥8.0bn (+6.6%).

• FY2024 planned R&D expense is ¥4.3bn (+25.7%); capital expenditure is ¥4.8bn (-21.0%). Assumed exchange rate: ¥140 per US dollar.

• Semiconductor demand recovery is expected in H2 FY2024; plans include strengthening production readiness and developing products for advanced and back-end processes.