Tokyo Ohka Kogyo (4186) Q4 2024 earnings summary

Executive summary

• Achieved record highs in net sales, operating income, ordinary income, and profit attributable to owners of parent for FY2024, driven by strong demand for advanced semiconductors and growth in the Chinese market.

• Net sales reached ¥200,966 million, up 23.8% year-over-year, with profit attributable to owners of parent up 78.4%.

• Major investments included new plant construction in Kumamoto, Japan, and facility expansion in Korea.

• FY2025 is forecasted to continue this growth trend, with double-digit increases in revenue and profit expected.

• Employee incentives enhanced via a restricted stock plan, aligning interests with shareholders.

Financial highlights

• FY2024 net sales: ¥200,966 million (+23.8% YoY); operating income: ¥33,090 million (+45.7% YoY); ordinary income: ¥34,554 million (+42.4% YoY); profit attributable to owners of parent: ¥22,683 million (+78.4% YoY); EBITDA: ¥41,424 million (+36.2% YoY).

• FY2025 forecasts: net sales ¥222,000 million (+10.5% YoY), operating income ¥37,300 million (+12.7% YoY), ordinary income ¥38,200 million (+10.5% YoY), profit attributable to owners of parent ¥24,600 million (+8.4% YoY), EBITDA ¥46,800 million (+13.0% YoY).

• Gross profit rose to ¥73,444 million from ¥57,950 million year-over-year.

• Annual dividend per share (post-split) was ¥63.00, with a payout ratio of 33.5%.

• Net assets per share increased to ¥1,671.82 from ¥1,516.99 year-over-year.

Outlook and guidance

• Continued strong demand expected for generative AI-related semiconductors and new customer plant operations.

• Dividend growth to continue, with FY2024 annual dividend at ¥63 and FY2025 forecasted at ¥70.

• Ongoing share buyback program of ¥7.0 billion resolved in November 2024.

• Focus on expanding market share in photoresists and high-purity chemicals for semiconductors.

• Foreign exchange rate assumption: $1 = ¥145.