Tokyo Ohka Kogyo (4186) investor relations material

Executive summary

• Net sales rose 23.6% year-over-year to ¥67.1 billion, driven by strong semiconductor demand, especially for generative AI-related products, despite slow smartphone growth.

• Operating income increased 53.8% year-over-year to ¥15.1 billion, and profit attributable to owners of parent grew 55.8% to ¥11.7 billion.

• The company revised some quantitative objectives in its medium-term plan due to higher-than-expected AI demand and a weaker yen, while qualitative objectives remain unchanged.

Financial highlights

• Net sales: ¥67.1 billion (+23.6% YoY); Operating income: ¥15.1 billion (+53.8% YoY); Ordinary income: ¥15.4 billion (+56.2% YoY); EBITDA: ¥17.7 billion (+49.3% YoY).

• Gross profit for the quarter was ¥27.1 billion, up from ¥20.5 billion year-over-year.

• Basic earnings per share rose to ¥97.81 from ¥62.91 year-over-year.

• Comprehensive income surged to ¥13.1 billion, up 296.1% year-over-year.

• Electronic functional materials sales up 29.0% YoY; High-purity chemicals up 17.2% YoY.

Outlook and guidance

• Full-year net sales forecast maintained at ¥261.0 billion (+10.1% YoY); operating income forecast at ¥52.2 billion (+10.2% YoY).

• Profit attributable to owners of parent is forecast at ¥35.0 billion, up 5.0% year-over-year.

• Interim dividend expected at ¥40 per share, annual dividend at ¥80 per share, continuing nine years of dividend growth.

• No changes to previously announced forecasts; strong demand expected in advanced applications and generative AI.