SWCC Corporation (5805) Q3 2024 earnings summary

Executive summary

• Q3 saw strong investment in decarbonization, semiconductors, and digital demand, with construction projects concentrated in the quarter and continued leveling of project timing.

• Net sales for the nine months ended December 31, 2024, rose 12.5% YoY to ¥178.2 billion.

• Operating profit increased 78.2% YoY to ¥16.7 billion.

• Energy and Infrastructure Business drove YoY sales and operating income growth, while automotive-related markets faced production suspensions and weak China sales.

• Profit attributable to owners of parent declined 22.7% YoY to ¥7.1 billion.

Financial highlights

• Net sales rose 12.5% YoY to ¥178.2 billion; operating profit up 78.2% YoY to ¥16.7 billion.

• Operating income margin improved by 3.4pt YoY to 9.3%.

• Basic earnings per share for the nine months was ¥262.19, up from ¥212.14 YoY.

• Equity-to-asset ratio improved to 50.4% as of December 31, 2024, from 47.0% at March 31, 2024.

• Net assets increased to ¥81.8 billion from ¥77.1 billion at the previous fiscal year-end.

Outlook and guidance

• Full-year net sales and operating profit targets maintained; ordinary profit forecast revised down.

• Full-year net sales forecast revised to ¥234.0 billion, up 9.4% YoY.

• Operating profit projected at ¥20.5 billion, a 59.9% increase YoY.

• Profit attributable to owners of parent expected to reach ¥10.0 billion, up 13.1% YoY.

• Upward revision of FY2026 operating profit target to ¥24.0 billion and net assets to ¥100.0 billion, with higher dividend guidance.