Japan Investment Adviser (7172) Q3 2024 earnings summary

Executive summary

• Operating income and net sales surged, driven by robust performance in the Operating Lease Business, with record-high equity sales and strong deal development outpacing the previous year.

• Net sales for the nine months reached ¥21,117 million, up 42.4% year-over-year; operating profit rose 150.9% to ¥8,947 million; profit attributable to owners of parent grew 44.3% to ¥3,220 million.

• Significant growth was also seen in Renewable Energy, Real Estate, and Private Equity Investment segments.

• A significant non-operating foreign exchange loss of over ¥5.1 billion was recorded in Q3 due to rapid yen appreciation.

Financial highlights

• Gross profit increased from ¥6,247 million to ¥14,688 million year-over-year, with gross profit margin improving to 69.6% from 57.9%.

• Ordinary profit increased 55.5% to ¥4,889 million; profit attributable to owners of parent grew 44.3% to ¥3,220 million.

• Net profit per share for the period was ¥53.25, up from ¥36.91 in the prior year.

• Comprehensive income for the period was ¥3,423 million.

• SG&A expenses increased by 14.4% due to higher labor costs, taxes, and compensations.

Outlook and guidance

• Full-year FY2024 forecast revised upward: net sales expected at ¥28,900 million, operating profit at ¥12,000 million, ordinary profit at ¥10,000 million, and net income at ¥6,500 million.

• Net income per share forecasted at ¥107.47 for FY2024.

• The three-year plan targets net profit of ¥25 billion and a net profit ratio of 36% by FY2026.

• Ordinary and net income forecasts were revised downward to reflect foreign exchange losses.