TechnoPro Holdings (6028) Q4 2024 earnings summary

Executive summary

• Revenue grew 9.7% year-on-year to JPY 219.2 billion, with gross profit up 11.2% and gross profit margin improving to 26.8%.

• Core operating profit increased 14.1% to JPY 24.4 billion; operating profit was JPY 21.9 billion, up 0.4% year-on-year.

• Net profit was JPY 14.7 billion, down 4.4% year-on-year, impacted by impairment losses.

• Missed guidance for the second consecutive year due to high recruitment and training costs, and impairment losses in Japan and overseas segments.

• Major domestic businesses (R&D and construction management outsourcing) delivered steady growth, accounting for about 90% of group revenue and profit.

Financial highlights

• Gross profit margin improved to 26.8% (up 0.3 pts year-on-year); core operating profit margin rose to 11.1%.

• SG&A expenses rose to JPY 34.4 billion (+JPY 2.9 billion YoY), mainly from hiring and overseas segment costs.

• Year-end cash balance was JPY 45.2 billion, about JPY 4 billion higher in real terms due to payment timing.

• Dividend per share increased to JPY 80 (up JPY 5 year-on-year); total shareholder return ratio reached 84.6%.

• Net cash position at year-end was JPY 31.4 billion.

Outlook and guidance

• FY25.6 revenue guidance is JPY 237 billion (+8.1% YoY); operating profit forecast at JPY 27 billion (+23.2%).

• Net profit expected to rise 26.0% to JPY 18.5 billion; EPS forecast at JPY 174.60 (+26.9%).

• Dividend forecast for FY25.6 is JPY 90 per share (payout ratio 51.5%).

• Share buyback program of up to JPY 5 billion established for the fiscal year.

• Anticipate improved unit sales price and stable utilization, though engineer growth may slow due to higher turnover.