ZERO (9028) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 5.9% to ¥140.751bn; operating profit rose 22.6% to ¥6.222bn and net income attributable to owners rose 20.7% to ¥4.150bn.

• Growth reflected recovery in domestic vehicle transport, fee revisions, more pre-delivery inspections and used-vehicle exports; So-ing Co., Ltd. also contributed to segment profit growth.

• The 2024–26 plan targets revenue of at least ¥150bn, operating profit of at least ¥10bn and ROE of at least 14% by FY2027.

• Priorities include service and logistics quality, labor capacity, digital investment, group synergies and stronger capital returns.

Financial highlights

• FY2024 revenue increased ¥7.890bn YoY; operating profit increased ¥1.148bn and profit before tax was ¥6.227bn.

• Gross profit rose to ¥17.668bn from ¥15.200bn; basic EPS increased to ¥245.61 from ¥203.96.

• Total assets rose 25.1% to ¥70.733bn; equity attributable to shareholders was ¥37.209bn.

• Cash and equivalents more than doubled to ¥11.316bn; borrowings and bonds increased ¥3.5bn to ¥5.1bn.

Outlook and guidance

• FY2025 guidance: revenue ¥135bn (-4.1%), operating profit ¥8.1bn (+30.1%) and net income ¥5.5bn (+32.5%).

• FY2025 targets include 6.0% operating margin, 14.0% ROE, EPS of ¥325.46 and annual dividends of ¥107.40 per share.

• FY2027 targets include operating margin of at least 6.5%, PER of at least 8.0x and PBR of at least 1.0x, alongside revenue, profit and ROE targets.

• Efficiency improvements and the full-year effect of rate revisions are expected to support operating profit growth.