TOKYO KEIKI (7721) Q1 2025 earnings summary

Executive summary

• Net sales for 1Q FY2024 were ¥8,693 million, a 7.7% decrease year-over-year.

• Operating profit was ¥(479) million, nearly flat YoY, while profit attributable to owners of parent was ¥(258) million, up ¥53 million YoY.

• Comprehensive income for the quarter was ¥165 million, up from ¥55 million last year.

• Order backlog reached a record high of ¥50,055 million, mainly from Defense & Communications Equipment.

• Full-year forecasts remain unchanged, expecting increases in net sales and operating profit compared to FY2023.

Financial highlights

• Net sales: ¥8,693 million (down ¥724 million YoY).

• Operating profit: ¥(479) million (up ¥4 million YoY).

• Ordinary profit: ¥(407) million (down ¥3 million YoY).

• Profit attributable to owners of parent: ¥(258) million (up ¥53 million YoY).

• Basic earnings per share: ¥15.71 (down from ¥18.95 YoY).

• Total assets as of June 30, 2024: ¥69,719 million.

• Net assets: ¥36,669 million; equity ratio: 51.9%.

• Net assets per share: ¥2,202.72.

• Exchange rate: ¥155.00/USD (vs. ¥137.50 last year).

Outlook and guidance

• FY2024 full-year forecast: Net sales ¥57,300 million (+21.5% YoY), operating profit ¥3,560 million (+28.6% YoY), operating margin 6.2%.

• Profit attributable to owners of parent forecast at ¥2,850 million (+25.2% YoY).

• Defense & Communications Equipment segment expected to drive growth, with sales concentrated in the second half.

• Demand for new shipbuilding and maintenance services in East Asia expected to remain steady.

• Annual dividend per share forecast at ¥35.00, record high for two consecutive years.