Newtech Co., Ltd., First Half Ordinary Profit Decreases by 31%, June-Augus Ordinary Profit Decreases by 13%

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Fri Oct 4, 2024 3:00 pm JST Earnings

6734 Newtech Co., Ltd. 【J-GAAP】

Earnings Report

Newtech Co., Ltd. <6734> [TSE-S] announced its financial results after the market closed on October 4th (15:00). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending February 2025 (March to August) dropped by 31.1% from the same period last year to 146 million yen. The progress rate against the 442 million yen full-year plan was 33.0%, also falling below the five-year average of 46.9%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit for the September to February period (second half) is expected to expand by 62.6% from the same period last year, reaching 296 million yen.

In the most recent three-month period, from June to August (2Q), the consolidated ordinary profit decreased to 123 million yen, a 13.4% decrease compared to the same period last year. The operating profit margin significantly dropped from 13.6% in the same period last year to 8.4%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Mar - Aug, 2022	1,689	204	206	149	78.2	45.6	Oct 5, 2022	J-GAAP
Mar - Aug, 2023	1,782	204	212	158	82.8	53.8	Oct 5, 2023	J-GAAP
Mar - Aug, 2024	2,138	139	146	107	56.0	33.0	Oct 4, 2024	J-GAAP
YoY	+20.0%	-31.9%	-31.1%	-32.3%	-32.3%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar - Aug, 2024 Guidance	2,138	139	146	107	55.4	0	Sep 26, 2024	J-GAAP
Mar - Aug, 2024 Results	2,138	139	146	107	56.0	0	Oct 4, 2024	J-GAAP
Revision Rate	0.0%	0.0%	0.0%	0.0%	+1.1%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Sep - Feb, 2023	1,929	158	182	132	69.1	50	Apr 12, 2024	J-GAAP
Sep - Feb, 2024 Guidance	2,073	302	296	219	113.4	50	Sep 26, 2024	J-GAAP
YoY	+7.5%	+91.1%	+62.6%	+65.9%	+64.2%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Feb, 2023	3,657	448	452	319	166.9	40	Apr 12, 2023	J-GAAP
Feb, 2024	3,711	362	394	290	151.8	50	Apr 12, 2024	J-GAAP
Feb, 2025 Guidance	4,211	441	442	326	168.8	50	Apr 12, 2024	J-GAAP
YoY	+13.5%	+21.8%	+12.2%	+12.4%	+11.2%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jun - Aug, 2023	1,047	142	142	109	57.1	13.6	Oct 5, 2023	J-GAAP
Sep - Nov, 2023	724	2	4	1	0.5	0.3	Jan 9, 2024	J-GAAP
Dec - Feb, 2023	1,205	156	178	131	68.6	12.9	Apr 12, 2024	J-GAAP
Mar - May, 2024	705	18	23	16	8.7	2.6	Jul 5, 2024	J-GAAP
Jun - Aug, 2024	1,433	121	123	91	47.6	8.4	Oct 4, 2024	J-GAAP
YoY	+36.9%	-14.8%	-13.4%	-16.5%	-16.6%