■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).

ODK Solutions' consolidated financial estimates for the fiscal year ending March 2025 are expected to be 670 million yen in revenue, a 14.2% increase from the fiscal year ending March 2024, 470 million yen in operating profit, a 17.9% decrease, 500 million yen in ordinary profit, a 17.3% decrease, and 340 million yen in net income attributable to parent company shareholders, a 27.4% increase. The revenue for all businesses is expected to grow by double digits, but operating profit and ordinary profit are expected to decrease due to strategic investments for growth such as building a system for mainland education business, and net income attributable to parent company shareholders is expected to increase due to the dropping off of impairment loss recorded in the previous period. In terms of revenue trends by business, the education business is expected to increase demand for development related to entrance examination systems and progress in price rationalization, securities and brokerage businesses are expected to increase demand for system development related to WITH-X(R) and general business is expected to increase orders related to clinical inspection system and human resource development support as well as increase in revenue related to Potus subsidiary's career port and expectation of carrying out new M&A. Overall, there is a conservative impression on the profit side, but considering factors such as the full-scale effect of price rationalization in mainland education business, we believe that there is a possibility of exceeding the company's estimates.

(Authored by FISCO guest analyst Masanobu Mizuta)