Tomen Devices (2737) Q4 2024 earnings summary

Executive summary

• FY2024 revenue fell 11.2% YoY to ¥370.7bn as weak consumer-device demand outweighed resilient server, storage and automotive demand; memory prices began recovering in H2.

• Net income declined to ¥2.1bn, including a ¥4.2bn special loss following a customer’s civil rehabilitation filing; results exceeded the June 2023 revised forecast.

Financial highlights

• Revenue ¥370.7bn, down ¥46.9bn YoY; operating income ¥9.48bn, down ¥2.75bn; ordinary income ¥6.20bn, down ¥386m.

• Net income ¥2.10bn, down ¥2.81bn YoY; EPS ¥308 versus ¥721.

• Operating profit was pressured by currency movements and higher SG&A, partly offset by improved margins; FX-related profit impact was ¥3.05bn negative.

Outlook and guidance

• FY2025 revenue forecast ¥400.0bn, up 7.9% YoY; operating income ¥7.60bn, down 19.8%; ordinary income ¥5.40bn, down 13.0%; net income ¥4.20bn, up 100.4%.

• Memory supply-demand normalization and rising prices are expected; demand in servers, storage, PCs and smartphones is expected to recover toward H2 FY2025.

• Mid-term FY2026 targets remain unchanged: revenue ¥500bn, net income stably ¥6bn and ROE stably 10%; FY2024 missed targets due to special factors.