■Future Outlook LeTech <3497> expects an increase in sales and ordinary income of more than 20%, with sales of 2.14 billion yen (+33.8% YoY), operating income of 150 million yen (+7.7% YoY), ordinary income of 100 million yen (+21.7% YoY), and net income of 1.03 billion yen (-11.4% YoY) for the July 2024 term, and has maintained its initial forecast (announced in September 2023).
1. Financial estimates for the consolidated results for the March 2025 period. 2. Business trends and key initiatives. For the March 2025 period, SIG Group's consolidated business performance is expected to have revenues of ¥800 million, a 15.8% increase from the previous year; operating income of ¥420 million, an 18.1% increase from the previous year; ordinary income of ¥440 million, a 23.2% increase from the previous year; and net income attributable to the parent company's shareholders of ¥280 million, a 17.0% increase from the previous year. This is a significant increase in revenue and profit expectations. On the revenue side, the plan is to have ¥56 million in system development business, a 7.6% increase, and ¥24 million in infrastructure and security services business, a 40.4% increase. Demand for the public and energy sectors, as well as the cloud security area, continues to be high, and the inclusion of You I Solutions also contributes to the infrastructure and security service business. On the profit side, there are expected to be increases in personnel expenses, goodwill amortization associated with M&A, and increased administrative costs, as well as an impact from unprofitable cases at Y.C.O., which is expected to be resolved by the end of the March 2025 period, but revenue growth is expected to absorb these effects. In addition, EBITDA, taking into account goodwill amortization, etc., is planned to increase by 13.9% from the previous year to ¥548 million. Furthermore, we expect to see a significant increase in dividends, from ¥14 per share to ¥24 per share. Looking at each half-year, the plan is for sales to be ¥3,900 million and operating income to be ¥188 million in the first half, and sales to be ¥4.1 billion and operating income to be ¥232 million in the second half. We have planned the second half to be more heavily weighted, taking into account the trend of the fourth quarter being more heavily weighted. We expect the effects of improving unit price in orders and creating group synergies, among other things, to progress for the second half, and believe that there is potential for the company forecast to exceed expectations.
For the consolidated financial estimates for the fiscal year ending in March 2025 for the SIG Group <4386>, sales are expected to increase 15.8% year-on-year to ¥8,000 million, operating profit is expected to increase 18.1% to ¥420 million, ordinary profit is expected to increase 23.2% to ¥440 million, and net income in the parent company will increase 17.0% to ¥280 million. Significant revenue and profit growth is expected. The sales are planned to be ¥5,600 million and ¥2,400 million, respectively, with a 7.6% increase in system development business and a 40.4% increase in infrastructure and security services business. Demand in the public sector, energy sector, and cloud security areas continue to remain at a high level, contributing to the new connection of UI Solutions in the infrastructure and security services business.
To strengthen staffing and improve the technical level in the cloud security area.
Business trends and key initiatives by division: The system development business will continue to have existing cases in the public sector such as mutual aid and national health insurance, as well as strive to participate in new participation in refreshing personnel and salary systems. In the service sector, MVNO-based system development remains the focus, and the collaboration and system expansion of healthcare businesses, the development of systems for general incorporated associations, and DX solutions continue to perform well. While the manufacturing sector will continue to reduce its operational capacity in some areas from the previous year, it will shift personnel to public and energy sectors that have strong orders. Act Information Service expects to have steady transactions with existing clients as its primary focus. The infrastructure and security services business aims to expand sales in the cloud migration field, where demand is high in all areas, by strengthening technical personnel in the Azure field, in addition to AWS, which was previously its mainstay. In the security field, we will promote expanded orders from non-core customers with high value-added consulting areas and distinctive services, etc. In order to make up for the lack of personnel in the cloud security area, we will promote staffing and improved technical levels in the cloud security area by strengthening the CS solution center function, which works across business units on a nationwide basis, and enhancing coordination with local bases. We also anticipate that the performance of You I Solutions (which has about 70% of its revenue from infrastructure and security services, and about 30% from system development businesses) will continue to progress smoothly.
Business trends and key initiatives by division:
The system development business will continue to have existing cases in the public sector such as mutual aid and national health insurance, as well as strive to participate in new participation in refreshing personnel and salary systems. In the service sector, MVNO-based system development remains the focus, and the collaboration and system expansion of healthcare businesses, the development of systems for general incorporated associations, and DX solutions continue to perform well. While the manufacturing sector will continue to reduce its operational capacity in some areas from the previous year, it will shift personnel to public and energy sectors that have strong orders. Act Information Service expects to have steady transactions with existing clients as its primary focus.
The infrastructure and security services business aims to expand sales in the cloud migration field, where demand is high in all areas, by strengthening technical personnel in the Azure field, in addition to AWS, which was previously its mainstay. In the security field, we will promote expanded orders from non-core customers with high value-added consulting areas and distinctive services, etc. In order to make up for the lack of personnel in the cloud security area, we will promote staffing and improved technical levels in the cloud security area by strengthening the CS solution center function, which works across business units on a nationwide basis, and enhancing coordination with local bases. We also anticipate that the performance of You I Solutions (which has about 70% of its revenue from infrastructure and security services, and about 30% from system development businesses) will continue to progress smoothly.
(Authored by FISCO guest analyst Masanobu Mizuta)