Technoflex (3449) Q2 2024 earnings summary

Executive summary

• Revenue decreased by 2.8% year-over-year to ¥10,318 million, but operating profit rose 22.2% to ¥1,034 million and net profit attributable to shareholders increased 14.9% to ¥615 million.

• Despite lower sales in the automotive/robotics segment due to inventory adjustments, overseas sales in the fittings segment and high-margin projects in the disaster prevention/construction segment drove profit growth.

Financial highlights

• Operating profit margin improved as operating profit grew 22.2% year-over-year despite a 2.8% revenue decline.

• Ordinary profit increased 15.7% year-over-year to ¥971 million.

• Comprehensive income rose 42.8% year-over-year to ¥1,290 million.

• EPS for the half-year was ¥33.58, up from ¥29.24 in the prior year.

Outlook and guidance

• Full-year guidance remains unchanged: revenue ¥23,000 million (+8.3%), operating profit ¥2,300 million (+55.1%), net profit ¥1,500 million (+55.2%), EPS ¥81.89.