Sanyo Special Steel, The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 9% Decrease, Second Half Dividend Postponed

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Fri Jan 31, 2025 4:00 pm JST Earnings

5481 Sanyo Special Steel Co.,Ltd. 【J-GAAP】

Earnings Report

Sanyo Special Steel Co.,Ltd. <5481> [TSE Prime] announced its financial results after the market closed on January 31st (16:00). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2025 (April to December) significantly dropped 65.0% from the same period last year to 3.17 billion yen.

In addition, the full-year consolidated ordinary profit has decreased 15.4%, from the previous forecast of 13 billion yen to 11 billion yen (compared to 12.1 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 9.2% 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 19.3%, from the previous forecast of 10.3 billion yen to 8.36 billion yen (compared to 4.3 billion yen in the same period of the previous year), leading to a reduction in the profit growth rate from 2.4 times to 94.4%.

At the same time, In conjunction with a Tender Offer Bid (TOB), the company has decided to forgo the the second half of 50 yen for the current fiscal year.

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit significantly dropped to 0.54 billion yen, a 57.0% decrease compared to the same period last year. The operating profit margin worsened from 1.8% in the same period last year to 0.8%.

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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
Apr - Dec, 2022	294,392	20,432	20,691	14,760	270.9	71.7	Feb 1, 2023	J-GAAP
Apr - Dec, 2023	268,962	8,820	9,077	6,315	115.9	74.9	Feb 2, 2024	J-GAAP
Apr - Dec, 2024	247,038	3,763	3,174	1,240	22.8	28.9	Jan 31, 2025	J-GAAP
YoY	-8.2%	-57.3%	-65.0%	-80.4%	-80.4%

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	173,577	10,098	10,369	7,967	146.2	50	Oct 31, 2024	J-GAAP
Oct - Mar, 2024 New	169,777	8,098	8,369	5,467	100.3	0	Jan 31, 2025	J-GAAP
Revision Rate	-2.2%	-19.8%	-19.3%	-31.4%	-31.4%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	342,000	13,200	13,000	9,500	174.4	70	Oct 31, 2024	J-GAAP
Mar, 2025 New	338,200	11,200	11,000	7,000	128.5	20	Jan 31, 2025	J-GAAP
Revision Rate	-1.1%	-15.2%	-15.4%	-26.3%	-26.3%

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	168,560	4,047	4,306	3,821	70.1	30	Apr 30, 2024	J-GAAP
Oct - Mar, 2024 Guidance	169,777	8,098	8,369	5,467	100.3	0	Jan 31, 2025	J-GAAP
YoY	+0.7%	+100.1%	+94.4%	+43.1%	+43.1%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	393,843	28,492	28,856	20,743	380.7	100	Apr 28, 2023	J-GAAP
Mar, 2024	353,810	11,366	12,119	9,056	166.2	65	Apr 30, 2024	J-GAAP
Mar, 2025 Guidance	338,200	11,200	11,000	7,000	128.5	20	Jan 31, 2025	J-GAAP
YoY	-4.4%	-1.5%	-9.2%	-22.7%	-22.7%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	83,712	1,501	1,264	1,080	19.8	1.8	Feb 2, 2024	J-GAAP
Jan - Mar, 2024	84,848	2,546	3,042	2,741	50.3	3.0	Apr 30, 2024	J-GAAP
Apr - Jun, 2024	88,518	2,456	2,820	2,030	37.3	2.8	Jul 30, 2024	J-GAAP
Jul - Sep, 2024	79,905	646	-189	-497	-9.1	0.8	Oct 31, 2024	J-GAAP
Oct - Dec, 2024	78,615	661	543	-293	-5.4	0.8	Jan 31, 2025	J-GAAP
YoY	-6.1%	-56.0%	-57.0%	－	－