Teikoku (6333) Q1 2023 earnings summary

Executive summary

• Q1 FY2023 revenue rose 25.2% YoY to ¥6,036m; operating profit increased 118.4% to ¥982m, led by pump sales and improved margins.

• Pump demand was strong, particularly in China and Asia; automotive production cuts and supply-chain disruption weighed on electronic components.

Financial highlights

• Revenue ¥6,036m, up 25.2% YoY; gross profit ¥2,533m, up 30.1%; SG&A ¥1,551m, up 3.6%.

• Operating profit ¥982m, up 118.4%; ordinary profit ¥1,278m, up 129.7%; net income attributable to parent shareholders ¥847m, up 157.6%.

• Yen depreciation supported results; foreign-exchange gains increased ¥211m YoY, contributing to the rise in ordinary profit.

Outlook and guidance

• FY2023 guidance unchanged: revenue ¥24,740m (+11.2%), operating profit ¥2,940m (+17.9%), ordinary profit ¥3,130m (+6.0%), and net income ¥2,140m (+7.7%).

• Pump segment forecast: revenue ¥22,810m (+12.0%) and operating profit ¥2,860m (+17.1%); electronic components revenue ¥1,720m and operating profit ¥70m.

• Forecast assumes average rates of ¥120/$, ¥130/€, and ¥18/ yuan; pump growth is expected from high opening backlog, while raw-material inflation is expected to constrain profit in Japan.