Choei Inc., The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 22% Decrease

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Wed Nov 13, 2024 3:31 pm JST Earnings

2993 Choei Inc. 【J-GAAP】

Earnings Report

Choei Inc. <2993> [TSE-S] announced its financial results after the market closed on November 13th (15:31). The ordinary profit (non-consolidated) for the cumulative second quarter of the fiscal year ending March 2025 (April to September) was 916 million yen, a 0.3% increase compared to the same period last year, resulting in an increase in profits compared to the previous forecast of a 20.0% decrease.

However, the full-year ordinary profit has downwardly by 28.2%, from the previous forecast of 1.62 billion yen to 1.16 billion yen (compared to 1.5 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 22.5% decrease in profit. However, the full-year net income has been revised upward by 67.3%, from the previous forecast of 1.08 billion yen to 1.82 billion yen (compared to 1.25 billion yen in the previous period), reaches new record high for the first time in three terms, turning to a 45.1% increase in the net income outlook.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the ordinary profit for the October to March period (second half) is expected to significant drop by 57.7% from the same period last year to 250 million yen.

In the most recent three-month period, from July to September (2Q), the ordinary profit grew by 17.4% from the same period last year, reaching 480 million yen. The operating profit margin rose from 21.1% in the same period last year to 22.2%.

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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	4,602	1,228	1,087	728	163.8	54.3	Nov 11, 2022	J-GAAP
Apr - Sep, 2023	4,592	1,056	913	670	153.3	60.7	Nov 10, 2023	J-GAAP
Apr - Sep, 2024	4,874	1,051	916	624	142.4	78.6	Nov 13, 2024	J-GAAP
YoY	+6.1%	-0.5%	+0.3%	-6.9%	-7.1%

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	4,767	882	730	490	111.5	0	May 13, 2024	J-GAAP
Apr - Sep, 2024 Results	4,874	1,051	916	624	142.4	0	Nov 13, 2024	J-GAAP
Revision Rate	+2.2%	+19.2%	+25.5%	+27.3%	+27.7%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	9,728	1,970	1,623	1,089	247.9	90	May 13, 2024	J-GAAP
Mar, 2025 New	9,803	1,511	1,166	1,822	414.7	90	Nov 13, 2024	J-GAAP
Revision Rate	+0.8%	-23.3%	-28.2%	+67.3%	+67.3%

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	4,776	768	591	586	134.7	107	May 13, 2024	J-GAAP
Oct - Mar, 2024 Guidance	4,929	460	250	1,198	272.7	90	Nov 13, 2024	J-GAAP
YoY	+3.2%	-40.1%	-57.7%	+104.4%	+102.4%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	9,162	2,329	2,003	1,370	310.1	100	May 12, 2023	J-GAAP
Mar, 2024	9,368	1,824	1,504	1,256	288.7	107	May 13, 2024	J-GAAP
Mar, 2025 Guidance	9,803	1,511	1,166	1,822	414.7	90	Nov 13, 2024	J-GAAP
YoY	+4.6%	-17.2%	-22.5%	+45.1%	+43.6%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	2,317	490	409	334	76.4	21.1	Nov 10, 2023	J-GAAP
Oct - Dec, 2023	2,252	518	421	455	104.3	23.0	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	2,524	250	170	131	30.1	9.9	May 13, 2024	J-GAAP
Apr - Jun, 2024	2,374	497	436	297	68.1	20.9	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	2,500	554	480	327	74.6	22.2	Nov 13, 2024	J-GAAP
YoY	+7.9%	+13.1%	+17.4%	-2.1%	-2.3%