Optorun (6235) Q3 2024 earnings summary

Executive summary

• Third quarter 2024 saw a recovery in sales and profits, driven by increased demand for optical thin-film equipment for AI smartphones and growth in EV/connected car and optoelectronics segments.

• Net sales for the nine months ended September 30, 2024, were ¥25,189 million, down 12.9% year-over-year.

• Operating profit decreased 26.2% year-over-year to ¥6,318 million.

• Profit attributable to owners of parent fell 30.0% year-over-year to ¥4,098 million.

• Comprehensive income for the period was ¥6,124 million, compared to ¥6,922 million in the prior year.

Financial highlights

• Q3 cumulative orders received rose 13% year-over-year to ¥22.6bn; net sales fell 13% to ¥25.2bn.

• Operating income for Q3 cumulative was down 26% year-over-year to ¥6.3bn, but ordinary income rose 31% to ¥7.0bn and net income attributable to owners increased 33% to ¥5.4bn.

• Gross profit for the nine months was ¥12,179 million, down from ¥14,084 million year-over-year.

• Earnings per share for the period were ¥123.84, up from ¥94.02 year-over-year.

• Total assets as of September 30, 2024, were ¥77,289 million, slightly down from ¥78,490 million at the previous year-end.

Outlook and guidance

• Full-year 2024 forecast revised to net sales of ¥32bn, operating income of ¥7.6bn, ordinary income of ¥8.2bn, and net income of ¥6bn.

• Full-year earnings per share forecast is ¥136.58.

• Progress rates for the full-year plan are high for profits: 68% for net sales, 84% for operating income, 92% for ordinary income, and 101% for net income.

• Management targets an operating margin over 20% and ROE above 10% in the medium term.