SWCC Corporation (5805) Q2 2024 earnings summary

Executive summary

• Q2 net sales rose 19.3% year-over-year to ¥117.4 billion, driven by strong Energy and Infrastructure Business performance and robust demand in construction and electric power infrastructure sectors.

• Operating income surged 133.4% year-over-year to ¥10.4 billion, greatly exceeding initial expectations and prompting an upward revision of the full-year plan.

• Profit attributable to owners of parent increased 8.8% year-over-year to ¥3.6 billion.

• Growth drivers in Energy and Infrastructure and Communication and Industrial Devices segments outperformed, while the Electronic Equipment and Components Business faced an adjustment phase due to weak EV demand.

• Full-year forecasts for net sales and income were revised upward, with record highs expected for net sales, operating income, and ordinary profit.

Financial highlights

• Q2 net sales: ¥117.4 billion, up from ¥98.4 billion year-over-year.

• Q2 operating income: ¥10.4 billion, up from ¥4.5 billion year-over-year.

• Ordinary profit for the period was ¥7.1 billion, up 58.7% year-over-year.

• Basic earnings per share for the six months was ¥121.13, compared to ¥110.05 in the prior year.

• Comprehensive income reached ¥4.95 billion, a 20.1% increase year-over-year.

Outlook and guidance

• Full-year net sales forecast revised to ¥234.0 billion (up 9.4% year-over-year).

• Full-year operating income forecast revised to ¥20.5 billion (up 59.9% year-over-year).

• Profit attributable to owners of parent is projected at ¥10.0 billion, up 13.1% year-over-year, with EPS forecast at ¥338.29.

• Dividend increased to ¥120 per share (up ¥30 year-over-year), payout ratio 35.6%.

• Demand for construction and electric power infrastructure expected to remain strong; EV-related demand in adjustment phase.