Rengo, The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 17% Decrease

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Fri Jan 31, 2025 3:30 pm JST Revision

3941 Rengo Co., Ltd. 【J-GAAP】

Guidance Update Report

Rengo Co., Ltd. <3941> [TSE Prime] announced a performance revision after the market closed on January 31st (15:30). The consolidated ordinary profit for the fiscal year ending March 2025 has decreased 23.1%, from the previous forecast of 52 billion yen to 40 billion yen (compared to 47.9 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 16.6% decrease in profit.

Based on the downwardly revised full-year plan announced by the company, our calculation indicates that the October to March period (2H) consolidated ordinary profit has decreased 39.8%, from the previous forecast of 30.1 billion yen to 18.1 billion yen (compared to 20.5 billion yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 11.7% decrease in profit.

Kabutan News

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	504,866	30,202	30,129	16,117	65.0	15	Nov 1, 2024	J-GAAP
Oct - Mar, 2024 New	504,866	18,202	18,129	9,117	36.8	15	Jan 31, 2025	J-GAAP
Revision Rate	0.0%	-39.7%	-39.8%	-43.4%	-43.4%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	1,000,000	50,000	52,000	35,000	141.2	30	May 10, 2024	J-GAAP
Mar, 2025 New	1,000,000	38,000	40,000	28,000	113.0	30	Jan 31, 2025	J-GAAP
Revision Rate	0.0%	-24.0%	-23.1%	-20.0%	-20.0%

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	447,917	23,180	20,523	14,616	59.0	18	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	504,866	18,202	18,129	9,117	36.8	15	Jan 31, 2025	J-GAAP
YoY	+12.7%	-21.5%	-11.7%	-37.6%	-37.7%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	846,080	25,957	28,682	20,425	82.5	24	May 12, 2023	J-GAAP
Mar, 2024	900,791	48,855	47,984	33,025	133.3	30	May 10, 2024	J-GAAP
Mar, 2025 Guidance	1,000,000	38,000	40,000	28,000	113.0	30	Jan 31, 2025	J-GAAP
YoY	+11.0%	-22.2%	-16.6%	-15.2%	-15.3%