LEC,INC., First Half Ordinary Profit Increases by 51%

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Fri Nov 8, 2024 4:30 pm JST Earnings

7874 LEC,INC. 【J-GAAP】

Earnings Report

LEC,INC. <7874> [TSE-P] announced its financial results after the market closed on November 8th (16:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) expanded to 1.56 billion yen, an increase of 51.1% compared to the same period last year, exceeded the previous forecast of 1.2 billion yen.

The progress rate against the 1.65 billion yen full-year plan was 95.0%, also surpassing the five-year average of 76.1%.

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 October to March period (second half) is expected to significant drop by 87.4% from the same period last year to 82 million yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit grew by 20.8% from the same period last year, reaching 429 million yen. However, the operating profit margin remained almost flat, changing from 2.2% in the same period last year to 2.1%.

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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	26,819	1,385	1,298	1,290	37.4	120.0	Nov 11, 2022	J-GAAP
Apr - Sep, 2023	29,688	936	1,038	474	13.7	61.5	Nov 10, 2023	J-GAAP
Apr - Sep, 2024	32,693	1,230	1,568	1,121	32.8	95.0	Nov 8, 2024	J-GAAP
YoY	+10.1%	+31.4%	+51.1%	+136.5%	+139.9%

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	31,600	1,000	1,200	820	26.3	10	Aug 9, 2024	J-GAAP
Apr - Sep, 2024 Results	32,693	1,230	1,568	1,121	32.8	10	Nov 8, 2024	J-GAAP
Revision Rate	+3.5%	+23.0%	+30.7%	+36.7%	+24.8%

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	31,095	692	649	322	9.3	10	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	31,307	270	82	-121	-3.9	10	Nov 8, 2024	J-GAAP
YoY	+0.7%	-61.0%	-87.4%	－	－

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	55,461	911	1,082	942	27.2	20	May 12, 2023	J-GAAP
Mar, 2024	60,783	1,628	1,687	796	22.9	20	May 10, 2024	J-GAAP
Mar, 2025 Guidance	64,000	1,500	1,650	1,000	32.0	20	Aug 9, 2024	J-GAAP
YoY	+5.3%	-7.9%	-2.2%	+25.6%	+40.0%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	14,827	325	355	110	3.2	2.2	Nov 10, 2023	J-GAAP
Oct - Dec, 2023	16,706	1,060	1,055	550	15.8	6.3	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	14,389	-368	-406	-228	-6.6	-2.6	May 10, 2024	J-GAAP
Apr - Jun, 2024	16,104	886	1,139	811	23.3	5.5	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	16,589	344	429	310	9.1	2.1	Nov 8, 2024	J-GAAP
YoY	+11.9%	+5.8%	+20.8%	+181.8%	+185.8%