SWCC Corporation (5805) Q1 2024 earnings summary

Executive summary

• Q1 net sales rose 17.6% year-over-year to ¥56,943 million, driven by strong Energy and Infrastructure demand and special high-profit projects.

• Operating profit surged 203.5% year-over-year to ¥4,867 million, significantly exceeding initial expectations.

• All major business segments reported year-over-year sales and profit growth, with Energy and Infrastructure leading.

• Profit attributable to owners of parent increased 189.4% year-over-year to ¥2,929 million.

• Comprehensive income for the quarter was ¥3,941 million, up 93.3% from the prior year.

Financial highlights

• Net sales: ¥56.9 billion, up 17.6% year-over-year.

• Operating income: ¥4.9 billion, up 203.5% year-over-year; margin improved to 8.5% from 3.3%.

• Net income attributable to owners: ¥2.9 billion, up 148.3% year-over-year.

• Ordinary income: ¥4.6 billion, up 189.4% year-over-year.

• Basic earnings per share for the quarter were ¥99.20, compared to ¥39.48 last year.

Outlook and guidance

• Full-year forecasts remain unchanged despite strong Q1, with expectations for continued robust Energy and Infrastructure performance.

• Full-year FY2025 net sales forecast is ¥225,000 million, up 5.2% year-over-year.

• Operating profit is projected at ¥13,500 million (+5.3%), ordinary profit at ¥13,000 million (+6.4%), and profit attributable to owners at ¥9,000 million (+1.8%).

• Full-year basic EPS forecast is ¥304.82.

• Annual dividend forecast is ¥110.00 per share.