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Earnings Call Summary | Hitachi (ADR)(HTHIY.US) Q4 2023 Earnings Conference

Futu News ·  Apr 27 15:34  · Conference Call

The following is a summary of the Hitachi, Ltd. (HTHIY) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • Hitachi reported an FY '23 revenue growth of 12%, primarily from the Green Energy & Mobility and Digital Service & Systems sectors.

  • Adjusted EBITA rose 20% year-on-year with a 10.1% EBITA margin improvement.

  • Net income rose to JPY 589.8 billion, and core cash flow reached a record high of JPY 571.4 billion.

  • For FY '24, Hitachi expects revenue and profit increases in three sectors and anticipates core cash flow to reach JPY 1.5 trillion.

  • The company predicts a net income growth to JPY 600 billion in FY '24, with a projected core free cash flow of JPY 480 billion.

Business Progress:

  • The Lumada business continues to grow due to solid orders, and tri-sector revenue is projected to grow 5% in H1 '24.

  • Shareholder return is slated for an increase, with a total dividend of JPY 144.5 billion and an increased share buyback of JPY 100 billion.

  • The Digital Systems & Services sector, especially GlobalLogic, is expected to grow by 15% in FY '24.

  • Green Energy & Mobility sector revenue is expected to rise by 12% in FY '24.

  • Hitachi remains ahead of its 5-7% per annum revenue growth target, now aimed at 10% per year.

  • The company plans to invest JPY 1 trillion to seize new growth opportunities, balancing cash between shareholder returns and growth investments.

  • Hitachi is transitioning toward digitalizing its social infrastructure businesses and preparing to invest in their servitization.

  • The company is working to position Hitachi Vantara storage business as a generative AI data management base and partnering with NVIDIA for data management and IT x OT solutions.

  • The company is strategically planning for a potential slowdown in China's real estate market by targeting low-risk customers and focusing on maintenance and renewals.

More details: Hitachi (ADR) IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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