Obara Group (6877) Q4 2024 earnings summary

Executive summary

• Revenue increased 2.1% year-over-year to ¥56,391 million, with operating profit up 2.0% and ordinary profit up 1.2%.

• Net income attributable to shareholders declined 6.7% year-over-year to ¥6,724 million, mainly due to the absence of prior year’s one-time gains.

• The automotive sector saw continued robust capital investment globally, while electronics experienced a recovery in advanced semiconductor demand.

Financial highlights

• Operating margin was 16.3%, ordinary margin 17.4%, and net margin 11.9% for the period.

• Comprehensive income fell 24.3% year-over-year to ¥6,252 million.

• Cash and equivalents at period-end rose to ¥37,401 million, up ¥2,703 million from the previous year.

• Annual dividend maintained at ¥150 per share.

Outlook and guidance

• FY2025 forecast: revenue ¥56,000 million (down 0.7%), operating profit ¥8,900 million (down 3.2%), ordinary profit ¥9,300 million (down 5.1%), net income ¥6,400 million (down 4.8%).

• Cautious but steady investment expected in automotive, with moderate recovery in electronics driven by semiconductor demand.

• Assumes USD/JPY rate of 150.