Toyo Tanso (5310) Q2 2024 earnings summary

Executive summary

• Net sales for H1 FY2024 reached ¥26,284 million, up 10.8% year-over-year, driven by strong demand in semiconductor, mobility, and electronics applications, and 3.1% above forecast.

• Operating profit rose 26.0% year-over-year to ¥5,808 million, with margin improving to 22.1%.

• Ordinary profit increased 31.0% year-over-year to ¥6,994 million, and profit attributable to owners of parent rose 24.9% to ¥5,156 million.

• Growth was supported by favorable exchange rates, high-value-added product development, cost competitiveness, and improved product mix.

• Comprehensive income rose 39.2% year-over-year to ¥7,519 million.

Financial highlights

• Gross profit for H1 FY2024 reached ¥10,210 million, up from ¥8,588 million year-over-year.

• Basic EPS for H1 FY2024 was ¥245.89, up from ¥196.85 in H1 FY2023.

• Equity ratio remained high at 86.1% as of June 30, 2024.

• Cash and cash equivalents at period end were ¥12,843 million.

• Total assets increased to ¥104,204 million from ¥96,612 million at year-end 2023.

Outlook and guidance

• Full-year FY2024 net sales forecast maintained at ¥54,000 million, up 9.6% year-over-year, with operating profit projected to rise 17.4% to ¥10,900 million.

• Profit attributable to owners of parent forecast at ¥7,600 million (+1.2% YoY).

• Dividend forecast for FY2024 is ¥120 per share.

• Cautious outlook due to economic uncertainties in Europe, US, and China, and volatile exchange rates.

• Demand for Si semiconductor applications stronger than expected; SiC applications revised upward for compound materials but downward for special graphite.