Tokyo Ohka Kogyo (4186) Q2 2024 earnings summary

Executive summary

• Net sales for 1H FY2024 rose 22.0% year-over-year to ¥94.7 billion, driven by semiconductor market recovery, generative AI demand, and favorable exchange rates.

• 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

• Net sales: ¥94.7 billion (+22.0% YoY); Operating income: ¥13.4 billion (+23.3% YoY); EBITDA: ¥17.6 billion (+19.6% YoY).

• Ordinary income: ¥14.1 billion (+19.5% YoY); Profit attributable to owners of parent: ¥9.1 billion (+70.7% YoY).

• Gross profit for the first half was ¥33,432 million, up from ¥28,242 million year-over-year.

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

• Interim dividend set at ¥29 per share; annual dividend forecast at ¥58, reflecting a 3-for-1 stock split.

Outlook and guidance

• Full-year net sales forecast revised upward to ¥193.4 billion (+19.2% YoY); operating income forecast at ¥29.3 billion (+29.0% YoY).

• Profit attributable to owners of parent projected at ¥19.8 billion (+55.8% YoY); net sales and net income expected to reach record highs.

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

• Growth driven by generative AI adoption, Chinese market expansion, and new customer plant operations.