Tokyo Ohka Kogyo (4186) Q2 2024 earnings summary

Executive summary

• Net sales rose 22.0% year-over-year to ¥94.7 billion in 1H FY2024, driven by semiconductor market recovery, generative AI demand, and Chinese market growth.

• Operating income increased 23.3% year-over-year to ¥13.4 billion, and profit attributable to owners of parent surged 70.7% to ¥9.1 billion.

• The company continues to execute its Medium-Term Plan 2024, with FY2024 as the final year.

Financial highlights

• EBITDA for 1H FY2024 reached ¥17.6 billion, up 19.6% year-over-year.

• Gross profit for the first half was ¥33.4 billion, up from ¥28.2 billion year-over-year.

• Basic earnings per share for the period was ¥75.50, reflecting a 3-for-1 stock split effective January 1, 2024.

• Total assets rose by ¥21.2 billion to ¥273.1 billion as of June 30, 2024.

• Net cash provided by operating activities was ¥13.5 billion in 1H FY2024.

Outlook and guidance

• Full-year FY2024 net sales forecast revised upward to ¥193.4 billion, up 19.2% year-over-year.

• Operating income projected at ¥29.3 billion, up 29.0% year-over-year; profit attributable to owners of parent expected to reach ¥19.8 billion, up 55.8% year-over-year.

• Net sales and net income anticipated to reach record highs, driven by generative AI and Chinese market demand.

• Annual dividend forecast at ¥58 per share, reflecting a 3-for-1 stock split.

• Assumes foreign exchange rate of $1 = ¥145 for the remainder of the year.