Densan System Holdings Co.,Ltd., The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 39% Decrease

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Mon Nov 11, 2024 3:00 pm JST Earnings

4072 Densan System Holdings Co.,Ltd. 【J-GAAP】

Earnings Report

Densan System Holdings Co.,Ltd. <4072> [TSE-P] announced its financial results in the afternoon session on November 11th (15:00). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending December 2024 (January to September) dropped by 48.0% from the same period last year to 1.62 billion yen.

In addition, the full-year consolidated ordinary profit has downwardly by 40.0%, from the previous forecast of 4.12 billion yen to 2.47 billion yen (compared to 4.01 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 38.5% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the July to December period (second half) has downwardly by 65.5%, from the previous forecast of 2.52 billion yen to 870 million yen (compared to 1.94 billion yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 55.3% decrease in profit.

In the most recent three-month period, from July to September (3Q), the consolidated ordinary profit significantly dropped to 22 million yen, a 97.9% decrease compared to the same period last year. The operating profit/loss margin drastically worsened from 7.3% in the same period last year to -0.6%.

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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	37,995	1,848	2,109	1,385	128.4	58.8	Nov 10, 2022	J-GAAP
Jan - Sep, 2023	44,159	3,056	3,119	2,075	194.0	77.6	Nov 10, 2023	J-GAAP
Jan - Sep, 2024	45,106	1,461	1,622	847	79.7	65.7	Nov 11, 2024	J-GAAP
YoY	+2.1%	-52.2%	-48.0%	-59.2%	-58.9%

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	35,457	2,552	2,520	1,704	160.0	40	Aug 9, 2024	J-GAAP
Jul - Dec, 2024 New	30,957	752	870	324	30.4	40	Nov 11, 2024	J-GAAP
Revision Rate	-12.7%	-70.5%	-65.5%	-81.0%	-81.0%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2024 Prev	65,700	4,100	4,120	2,790	261.9	60	Aug 9, 2024	J-GAAP
Dec, 2024 New	61,200	2,300	2,470	1,410	132.4	60	Nov 11, 2024	J-GAAP
Revision Rate	-6.8%	-43.9%	-40.0%	-49.5%	-49.5%

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	29,713	1,954	1,945	609	57.0	19	Feb 9, 2024	J-GAAP
Jul - Dec, 2024 Guidance	30,957	752	870	324	30.4	40	Nov 11, 2024	J-GAAP
YoY	+4.2%	-61.5%	-55.3%	-46.8%	-46.7%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2022	53,479	3,414	3,587	2,348	217.7	35	Feb 10, 2023	J-GAAP
Dec, 2023	59,591	3,964	4,018	2,004	187.7	37	Feb 9, 2024	J-GAAP
Dec, 2024 Guidance	61,200	2,300	2,470	1,410	132.4	60	Nov 11, 2024	J-GAAP
YoY	+2.7%	-42.0%	-38.5%	-29.6%	-29.5%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	14,281	1,046	1,046	680	63.6	7.3	Nov 10, 2023	J-GAAP
Oct - Dec, 2023	15,432	908	899	-71	-6.7	5.9	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	14,653	1,119	1,145	786	74.0	7.6	May 13, 2024	J-GAAP
Apr - Jun, 2024	15,590	429	455	300	28.2	2.8	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	14,863	-87	22	-239	-22.5	-0.6	Nov 11, 2024	J-GAAP
YoY	+4.1%	－	-97.9%	－	－