Optorun (6235) Q2 2024 earnings summary

Executive summary

• Q2 FY12/2024 orders rose 20% year-over-year to JPY 7.3 billion, but sales dropped 55% YoY to JPY 5.4 billion due to delivery delays and longer lead times.

• Net sales for the six months ended June 30, 2024, declined 20.3% year-over-year to ¥16,677 million.

• Operating loss recorded in Q2 as R&D spending remained high; operating profit for H1 dropped 40.8% YoY to ¥3,942 million.

• Profit attributable to owners of parent decreased 8.6% YoY to ¥3,173 million, while comprehensive income rose to ¥6,779 million due to FX gains.

• Gross profit margin declined by 9.9 percentage points YoY to 40.3%.

Financial highlights

• Q2 net sales: JPY 5.4 billion, down 55% YoY; H1 net sales: ¥16,677 million, down 20.3% YoY; Q2 orders: JPY 7.3 billion, up 20% YoY but down 34% QoQ.

• Gross profit for H1: ¥8,592 million, down from ¥10,531 million YoY; gross profit margin: 40.3% (down 9.9 pts YoY); operating income margin: -0.4% in Q2.

• Net income for Q2: -JPY 110 million; net income per share: -2.6 yen; H1 earnings per share: ¥72.31.

• Dividend per share for FY24/12 projected at JPY 52 (interim: JPY 26); annual dividend forecast raised to ¥52.00 per share.

• Total assets as of June 30, 2024: ¥81,482 million; net assets: ¥61,810 million.

Outlook and guidance

• Full-year sales forecast maintained at JPY 37 billion (+1% YoY); net sales forecast at ¥37,000 million (+0.5% YoY).

• Operating profit forecast revised down 23% to JPY 7.6 billion; full-year operating profit projected at ¥7,500 million (+23.1% YoY).

• Profit attributable to owners of parent expected to reach ¥5,400 million (+16.6% YoY); full-year EPS forecast at ¥123.25.

• Recurring profit expected to rise 25% YoY to JPY 7.6 billion.

• Exchange rate assumptions for H2: ¥145/$ and ¥21/renminbi.