SHINKO ELECTRIC INDUSTRIES, The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 6% Decrease

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Fri Jan 31, 2025 3:30 pm JST Earnings

6967 SHINKO ELECTRIC INDUSTRIES CO., LTD. 【J-GAAP】

Earnings Report

SHINKO ELECTRIC INDUSTRIES CO., LTD. <6967> [TSE Prime] announced its financial results after the market closed on January 31st (15:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2025 (April to December) decreased 3.1% from the same period last year to 19.1 billion yen.

In addition, the full-year consolidated ordinary profit has decreased 36.8%, from the previous forecast of 40.5 billion yen to 25.6 billion yen (compared to 27.2 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 6.1% 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 October to March period (2H) has decreased 51.5%, from the previous forecast of 28.9 billion yen to 14 billion yen (compared to 13.1 billion yen in the same period of the previous year), leading to a reduction in the profit growth rate from 2.2 times to 6.5%.

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit increased 33.7% from the same period last year, reaching 7.55 billion yen. However, the operating profit margin decreased from 12.7% in the same period last year to 12.4%.

Kabutan News

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
Apr - Dec, 2022	232,543	71,160	72,887	50,506	373.9	92.5	Jan 31, 2023	J-GAAP
Apr - Dec, 2023	156,638	17,996	19,718	13,381	99.0	72.3	Jan 31, 2024	J-GAAP
Apr - Dec, 2024	159,891	19,121	19,115	13,598	100.6	74.7	Jan 31, 2025	J-GAAP
YoY	+2.1%	+6.3%	-3.1%	+1.6%	+1.6%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2024 Prev	134,970	27,976	28,935	18,985	140.5	0	Oct 31, 2024	J-GAAP
Oct - Mar, 2024 New	106,670	12,876	14,035	9,785	72.4	0	Jan 31, 2025	J-GAAP
Revision Rate	-21.0%	-54.0%	-51.5%	-48.5%	-48.5%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	243,300	40,700	40,500	27,200	201.3	0	Oct 25, 2024	J-GAAP
Mar, 2025 New	215,000	25,600	25,600	18,000	133.2	0	Jan 31, 2025	J-GAAP
Revision Rate	-11.6%	-37.1%	-36.8%	-33.8%	-33.8%

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	104,863	13,340	13,184	8,829	65.4	0	Apr 25, 2024	J-GAAP
Oct - Mar, 2024 Guidance	106,670	12,876	14,035	9,785	72.4	0	Jan 31, 2025	J-GAAP
YoY	+1.7%	-3.5%	+6.5%	+10.8%	+10.8%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	286,358	76,712	78,755	54,488	403.3	50	Apr 27, 2023	J-GAAP
Mar, 2024	209,972	24,810	27,257	18,609	137.7	25	Apr 25, 2024	J-GAAP
Mar, 2025 Guidance	215,000	25,600	25,600	18,000	133.2	0	Jan 31, 2025	J-GAAP
YoY	+2.4%	+3.2%	-6.1%	-3.3%	-3.3%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	51,529	6,526	5,645	3,601	26.7	12.7	Jan 31, 2024	J-GAAP
Jan - Mar, 2024	53,334	6,814	7,539	5,228	38.7	12.8	Apr 25, 2024	J-GAAP
Apr - Jun, 2024	53,358	7,254	6,935	4,958	36.7	13.6	Jul 25, 2024	J-GAAP
Jul - Sep, 2024	54,972	5,470	4,630	3,257	24.1	10.0	Oct 31, 2024	J-GAAP
Oct - Dec, 2024	51,561	6,397	7,550	5,383	39.8	12.4	Jan 31, 2025	J-GAAP
YoY	+0.1%	-2.0%	+33.7%	+49.5%	+49.5%