Headwaters Co.,Ltd, The Current Fiscal Year Ordinary Profit Revised Upward by 30%, Exceeded record profit forecast

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Thu Nov 14, 2024 4:00 pm JST Earnings

4011 Headwaters Co.,Ltd 【J-GAAP】

Earnings Report

Headwaters Co.,Ltd <4011> [TSE-G] announced its financial results after the market closed on November 14th (16:00). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending December 2024 (January to September) surged by 2.6 times that of the same period last year, reaching 218 million yen.

In addition, the full-year consolidated ordinary profit has been revised upward by 29.7%, from the previous forecast of 229 million yen to 297 million yen (compared to 98 million yen in the previous period), increasing the growth rate from 2.3 times to 3.0 times. The company has further increased its previous forecast of record profits for the first time in four years.

Based on the full-year plan announced by the company after the upward revision, our estimate of the consolidated ordinary profit for the July to December period (second half) is expected to increase by 86.1%, from the previous forecast of 79 million yen to 147 million yen (compared to 51 million yen in the same period of the previous year), increasing the growth rate from 54.9% to 2.9 times.

In the most recent three-month period, from July to September (3Q), the consolidated ordinary profit increased by 78.9% from the same period last year, reaching 68 million yen. The operating profit margin improved from 6.1% in the same period last year to 8.6%.

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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	1,067	24	19	11	6.3	17.9	Nov 14, 2022	J-GAAP
Jan - Sep, 2023	1,786	84	85	53	28.7	86.7	Nov 14, 2023	J-GAAP
Jan - Sep, 2024	2,087	216	218	145	77.1	73.4	Nov 14, 2024	J-GAAP
YoY	+16.9%	+157.1%	+156.5%	+173.6%	+168.5%

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	1,596	75	79	56	29.5	0	Aug 14, 2024	J-GAAP
Jul - Dec, 2024 New	1,596	142	147	106	55.8	0	Nov 14, 2024	J-GAAP
Revision Rate	0.0%	+89.3%	+86.1%	+89.3%	+89.3%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2024 Prev	2,928	226	229	156	82.2	0	Feb 14, 2024	J-GAAP
Dec, 2024 New	2,928	293	297	206	108.5	0	Nov 14, 2024	J-GAAP
Revision Rate	0.0%	+29.6%	+29.7%	+32.1%	+32.1%

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	1,157	48	51	40	21.5	0	Feb 14, 2024	J-GAAP
Jul - Dec, 2024 Guidance	1,596	142	147	106	55.8	0	Nov 14, 2024	J-GAAP
YoY	+37.9%	+195.8%	+188.2%	+165.0%	+159.2%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2022	1,574	110	106	75	40.1	0	Feb 14, 2023	J-GAAP
Dec, 2023	2,315	94	98	70	37.7	0	Feb 14, 2024	J-GAAP
Dec, 2024 Guidance	2,928	293	297	206	108.5	0	Nov 14, 2024	J-GAAP
YoY	+26.5%	+211.7%	+203.1%	+194.3%	+187.9%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	628	38	38	23	12.5	6.1	Nov 14, 2023	J-GAAP
Oct - Dec, 2023	529	10	13	17	9.2	1.9	Feb 14, 2024	J-GAAP
Jan - Mar, 2024	708	132	131	89	47.8	18.6	May 15, 2024	J-GAAP
Apr - Jun, 2024	624	19	19	11	5.9	3.0	Aug 14, 2024	J-GAAP
Jul - Sep, 2024	755	65	68	45	23.9	8.6	Nov 14, 2024	J-GAAP
YoY	+20.2%	+71.1%	+78.9%	+95.7%	+92.0%