NIPPON GEAR CO.,LTD., First Half Ordinary Profit Unexpectedly Revised Upward by 12%

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Thu Oct 31, 2024 1:00 pm JST Earnings

6356 NIPPON GEAR CO.,LTD. 【J-GAAP】

Earnings Report

NIPPON GEAR CO.,LTD. <6356> [TSE-S] announced its financial results in the afternoon session on October 31st (13:00). The ordinary profit (non-consolidated) for the cumulative second quarter of the fiscal year ending March 2025 (April to September) increased by 11.8% from the same period last year, reaching 919 million yen, resulting in an increase in profits compared to the previous forecast of a 12.4% decrease.

The progress rate against the 1.67 billion yen full-year plan was 55.0%, also surpassing the five-year average of 34.8%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the ordinary profit for the October to March period (second half) is expected to drop by 43.5% from the same period last year to 751 million yen.

In the most recent three-month period, from July to September (2Q), the ordinary profit grew by 3.6% from the same period last year, reaching 376 million yen. However, the operating profit margin decreased from 17.8% in the same period last year to 17.2%.

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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
Apr - Sep, 2022	3,184	214	231	194	13.7	23.1	Oct 28, 2022	J-GAAP
Apr - Sep, 2023	4,164	803	822	545	38.4	38.2	Oct 30, 2023	J-GAAP
Apr - Sep, 2024	4,241	890	919	625	43.9	55.0	Oct 31, 2024	J-GAAP
YoY	+1.8%	+10.8%	+11.8%	+14.7%	+14.5%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	4,500	700	720	500	35.1	4	May 13, 2024	J-GAAP
Apr - Sep, 2024 Results	4,241	890	919	625	43.9	4	Oct 31, 2024	J-GAAP
Revision Rate	-5.8%	+27.1%	+27.6%	+25.0%	+25.0%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	5,458	1,325	1,329	994	69.8	5	May 13, 2024	J-GAAP
Oct - Mar, 2024 Guidance	5,059	750	751	525	36.9	4	Oct 31, 2024	J-GAAP
YoY	-7.3%	-43.4%	-43.5%	-47.2%	-47.2%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	7,520	964	999	685	48.1	6	May 12, 2023	J-GAAP
Mar, 2024	9,622	2,128	2,151	1,539	108.1	8	May 13, 2024	J-GAAP
Mar, 2025 Guidance	9,300	1,640	1,670	1,150	80.8	8	May 13, 2024	J-GAAP
YoY	-3.3%	-22.9%	-22.4%	-25.3%	-25.3%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	2,009	358	363	247	17.4	17.8	Oct 30, 2023	J-GAAP
Oct - Dec, 2023	2,836	828	842	577	40.6	29.2	Jan 30, 2024	J-GAAP
Jan - Mar, 2024	2,622	497	487	417	29.3	19.0	May 13, 2024	J-GAAP
Apr - Jun, 2024	2,110	523	543	369	26.0	24.8	Jul 31, 2024	J-GAAP
Jul - Sep, 2024	2,131	367	376	256	18.0	17.2	Oct 31, 2024	J-GAAP
YoY	+6.1%	+2.5%	+3.6%	+3.6%	+3.5%