Totech (9960) Q2 2024 earnings summary

Executive summary

• Q2 FY2024 revenue rose 15.7% YoY to ¥637億円; operating profit increased 37.5% to ¥36億円, a record first-half operating profit.

• Strong demand across product sales and construction, including HVAC, controls and instrumentation systems, supported growth; orders remained firm.

Financial highlights

• Revenue was ¥637億円, up 15.7% YoY; operating profit was ¥36億円, up 37.5%, with a 5.7% margin, up 0.9 points.

• Ordinary profit increased 37.7% YoY to ¥40億円; net income attributable to owners of the parent rose 38.9% to ¥26億円.

• Revenue increased ¥86億円 YoY: construction work contributed +¥46億円, equipment sales +¥34億円, maintenance +¥6億円, and internal sales −¥3億円.

• Higher sales absorbed increases in cost of sales and SG&A; operating profit rose ¥985 million YoY to ¥3,616 million.

Outlook and guidance

• FY2024 guidance: revenue ¥1,350億円 (+6.6%), operating profit ¥88億円 (+13.8%), ordinary profit ¥93億円 (+13.8%) and net income ¥62億円 (+18.5%).

• FY guidance progress at Q2 was 47.2% for revenue and 41.1% for operating profit; orders are expected to remain firm, though growth in backlog is expected to moderate.

• FY2025 mid-term targets are revenue ¥1,500億円 and ordinary profit ¥100億円; FY2030 goals are ¥2,000億円 and ¥150億円, respectively.