Teikoku (6333) Q4 2024 earnings summary

Executive summary

• FY24 revenue reached a record ¥29,217m, up 2.7% YoY; operating income fell 2.8% to ¥4,882m as SG&A rose and the electronics business posted a loss.

• Core pump operations delivered record sales and operating profit; net income declined 21.8% to ¥3,125m, including a ¥570m special loss tied to the electronics business exit.

Financial highlights

• Revenue increased ¥767m to ¥29,217m; gross profit rose 1.5% to ¥12,249m, while gross margin eased to 41.9% from 42.4%.

• Operating income declined ¥141m to ¥4,882m; operating margin fell to 16.7% from 17.7%. Ordinary income was ¥5,442m, down 0.5%.

• Net income attributable to owners fell ¥871m to ¥3,125m; reported decline included the ¥570m special loss for the electronics business exit.

Outlook and guidance

• FY25 guidance: revenue ¥29,580m (+1.2%), operating income ¥4,750m (-2.7%), ordinary income ¥4,960m (-8.9%) and net income ¥2,870m (-8.2%).

• Pump revenue is forecast to rise 3.7% to ¥28,300m, with operating income nearly flat at ¥4,910m; electronics revenue is projected at ¥1,040m before its planned December 2024 shutdown.

• FY27 targets: revenue ¥32,000m, operating income ¥5,700m and ROE 14.0%; excluding electronics, targets imply revenue CAGR of 5.1% and operating income CAGR of 4.9% from FY24.