Techno Ryowa Ltd (1965) Q2 2024 earnings summary

Executive summary

• Q2 revenue rose 20.4% YoY to ¥31,671 million; operating profit increased 57.4% to ¥1,423 million and net income rose 57.0% to ¥1,236 million.

• Strong opening backlog and domestic investment demand supported growth; higher construction costs reduced gross profit margin.

Financial highlights

• Gross profit was ¥4,740 million, up 17.5% YoY; ordinary profit reached ¥1,869 million, up 54.7%.

• Orders increased 12.5% YoY to ¥50,617 million; backlog grew 23.7% to ¥67,227 million.

• Total assets were ¥64,026 million; net assets rose ¥1,753 million to ¥45,128 million, primarily on earnings and higher securities valuation gains.

• Operating cash flow was ¥802 million and free cash flow was ¥1,017 million for the quarter; ending cash and equivalents were ¥12,962 million.

Outlook and guidance

• FY2024 forecast: revenue ¥71,500 million (+17.2%), operating profit ¥3,600 million (+13.4%), ordinary profit ¥4,150 million (+16.7%), net income ¥2,780 million (+18.9%).

• Full-year orders forecast at ¥74,000 million (+0.5%) and backlog at ¥50,830 million (+5.4%); forecasts were revised on Sept. 29, 2023.

• Forecast EPS is ¥127.69; expected annual dividend is ¥40/share, comprising ¥16 interim and ¥24 year-end.

• Full-year sales forecast: industrial facilities ¥46.0bn, general buildings ¥22.0bn, and electrical, refrigeration and other businesses ¥3.5bn.