Shinhokoku Material Corp., July-September (3Q) Ordinary Profit Decreases by 62%, Current Fiscal Year Dividend Revised Upward by 10 yen

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Fri Nov 8, 2024 1:30 pm JST Earnings

5542 Shinhokoku Material Corp. 【J-GAAP】

Earnings Report

Shinhokoku Material Corp. <5542> [TSE-S] announced its financial results in the afternoon session on November 8th (13:30). The ordinary profit (non-consolidated) for the cumulative third quarter of the fiscal year ending December 2024 (January to September) decreased by 6.6% from the same period last year to 441 million yen. The progress rate against the 710 million yen full-year plan was 62.1%, also falling below the five-year average of 77.9%.

Based on the third-quarter cumulative performance announced by the company and the unchanged full-year plan, our calculation indicates that the ordinary profit for the October to December period (4Q) is expected to expand by 56.4% from the same period last year, reaching 269 million yen.

At the same time, the company has increased its planned annual dividend for the current fiscal year from the original plan of 40 yen to 50 yen (compared to 40 yen in the previous period).

In the most recent three-month period, from July to September (3Q), the ordinary profit significantly dropped to 81 million yen, a 62.0% decrease compared to the same period last year. The operating profit margin sharply declined from 11.9% in the same period last year to 5.5%.

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Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Jan - Sep, 2022	4,808	551	560	393	58.4	85.9	Nov 8, 2022	J-GAAP
Jan - Sep, 2023	4,732	457	472	356	52.9	73.3	Nov 9, 2023	J-GAAP
Jan - Sep, 2024	4,519	431	441	331	49.2	62.1	Nov 8, 2024	J-GAAP
YoY	-4.5%	-5.7%	-6.6%	-7.0%	-6.8%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2024 Prev	3,442	344	350	262	39.0	10	Aug 9, 2024	J-GAAP
Jul - Dec, 2024 New	3,442	344	350	262	39.0	15	Nov 8, 2024	J-GAAP
Revision Rate	0.0%	0.0%	0.0%	0.0%	0.0%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2024 Prev	6,600	700	710	530	78.8	20	Feb 9, 2024	J-GAAP
Dec, 2024 New	6,600	700	710	530	78.8	25	Nov 8, 2024	J-GAAP
Revision Rate	0.0%	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
Jul - Dec, 2023	3,507	379	385	281	41.8	12.50	Feb 9, 2024	J-GAAP
Jul - Dec, 2024 Guidance	3,442	344	350	262	39.0	15	Nov 8, 2024	J-GAAP
YoY	-1.9%	-9.2%	-9.1%	-6.8%	-6.8%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2022	6,361	638	652	492	73.1	15	Feb 10, 2023	J-GAAP
Dec, 2023	6,484	628	644	476	70.8	20	Feb 9, 2024	J-GAAP
Dec, 2024 Guidance	6,600	700	710	530	78.8	25	Nov 8, 2024	J-GAAP
YoY	+1.8%	+11.5%	+10.2%	+11.3%	+11.3%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	1,755	208	213	161	23.9	11.9	Nov 9, 2023	J-GAAP
Oct - Dec, 2023	1,752	171	172	120	17.8	9.8	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	1,581	162	163	121	18.1	10.2	May 10, 2024	J-GAAP
Apr - Jun, 2024	1,577	194	197	147	21.9	12.3	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	1,361	75	81	63	9.4	5.5	Nov 8, 2024	J-GAAP
YoY	-22.5%	-63.9%	-62.0%	-60.9%	-60.8%