Okano Valve Mfg (6492) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended August 31, 2024, rose 13.8% year-over-year to ¥5,709 million, driven by strong maintenance demand and increased sales of high-margin parts.

• Operating profit surged 179.1% year-over-year to ¥1,163 million, with net profit attributable to shareholders up 105.3% to ¥866 million.

• Maintenance segment outperformed, offsetting weaker valve manufacturing sales.

Financial highlights

• Operating profit margin improved significantly, with operating profit at ¥1,163 million and ordinary profit at ¥1,237 million, both more than doubling year-over-year.

• Net profit per share for the period was ¥541.54, up from ¥261.83 a year earlier.

• Total assets increased to ¥13,577 million, and net assets rose to ¥10,868 million, reflecting higher retained earnings.

• Equity ratio improved to 80.0% from 78.8% at the previous fiscal year-end.

Outlook and guidance

• Full-year revenue forecast remains at ¥7,506 million, with operating profit projected at ¥880 million and net profit at ¥650 million, unchanged from previous guidance.

• Fourth quarter expected to be challenging due to lower-margin projects, but full-year targets are expected to be met.

• Annual dividend forecast maintained at ¥40 per share.