Shinko Wire Company, Ltd., First Half Ordinary Profit Unexpectedly Revised Upward by 20%

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Thu Nov 7, 2024 1:20 pm JST Earnings

5660 Shinko Wire Company, Ltd. 【J-GAAP】

Earnings Report

Shinko Wire Company, Ltd. <5660> [TSE-S] announced its financial results in the afternoon session on November 7th (13:20). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) increased by 19.9% from the same period last year, reaching 686 million yen, resulting in an increase in profits compared to the previous forecast of a 65.0% decrease.

The progress rate against the 950 million yen full-year plan was 72.2%, also surpassing the five-year average of 36.0%.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit for the October to March period (second half) is expected to drop by 46.6% from the same period last year to 264 million yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit decreased to 332 million yen, a 23.7% decrease compared to the same period last year. The operating profit margin worsened from 4.9% in the same period last year to 3.9%.

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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	15,112	345	438	416	70.5	42.0	Nov 7, 2022	J-GAAP
Apr - Sep, 2023	15,892	528	572	451	76.4	53.7	Nov 8, 2023	J-GAAP
Apr - Sep, 2024	16,942	642	686	512	86.8	72.2	Nov 7, 2024	J-GAAP
YoY	+6.6%	+21.6%	+19.9%	+13.5%	+13.6%

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	17,000	200	200	150	25.4	10	Aug 6, 2024	J-GAAP
Apr - Sep, 2024 Results	16,942	642	686	512	86.8	30	Nov 7, 2024	J-GAAP
Revision Rate	-0.3%	+221.0%	+243.0%	+241.3%	+242.0%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	35,800	950	950	670	113.4	40	Aug 6, 2024	J-GAAP
Mar, 2025 New	34,800	950	950	670	113.4	40	Nov 7, 2024	J-GAAP
Revision Rate	-2.8%	0.0%	0.0%	0.0%	0.0%

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	16,834	495	494	455	77.0	25	May 9, 2024	J-GAAP
Oct - Mar, 2024 Guidance	17,858	308	264	158	26.7	10	Nov 7, 2024	J-GAAP
YoY	+6.1%	-37.8%	-46.6%	-65.3%	-65.3%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	31,280	938	1,044	832	140.9	45	May 10, 2023	J-GAAP
Mar, 2024	32,726	1,023	1,066	906	153.3	50	May 9, 2024	J-GAAP
Mar, 2025 Guidance	34,800	950	950	670	113.4	40	Nov 7, 2024	J-GAAP
YoY	+6.3%	-7.1%	-10.9%	-26.0%	-26.1%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	8,531	422	435	329	55.7	4.9	Nov 8, 2023	J-GAAP
Oct - Dec, 2023	8,205	317	317	297	50.3	3.9	Feb 8, 2024	J-GAAP
Jan - Mar, 2024	8,629	178	177	158	26.7	2.1	May 9, 2024	J-GAAP
Apr - Jun, 2024	8,324	308	354	173	29.4	3.7	Aug 6, 2024	J-GAAP
Jul - Sep, 2024	8,618	334	332	339	57.5	3.9	Nov 7, 2024	J-GAAP
YoY	+1.0%	-20.9%	-23.7%	+3.0%	+3.1%