■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).
Performance outlook for fiscal year ending September 2024.
Neomarketing (4196) sold all stocks of its subsidiary Sales Support in May 2024. The reason for the sale was because the company group mainly focuses on the BtoC business model, while Sales Support targets small businesses with a BtoB business model, which the management has determined has no business synergy with the group. As a result of the stock sale, the company expects to record special profits in the third quarter of the fiscal year ending September 2024 and upwardly-revised financial estimates for net income attributable to parent company shareholders for the entire fiscal year ending September 2024 only.
As a result, the revenue forecast is 2.5 billion yen (an increase of 9.9% compared to the previous fiscal year), operating profit is 200 million yen (a decrease of 35.8%), ordinary profit is 200 million yen (a decrease of 36.2%), and net income attributable to parent company shareholders is expected to be 280 million yen (an increase of 41.4%). Revenue is expected to grow due to the growth of the company's main research (insight-driven, customer-driven) and digital marketing/PR businesses. On the other hand, the company expects a decrease in operating profit and ordinary profit due to investments in hiring and developing personnel related to future sales expansion, starting from the fiscal year ending September 2025. The fiscal year ending September 2024 is the first year of the 3-year medium-term management plan and is positioned as an advance investment period for building an organizational infrastructure that enables medium to long-term growth. The management plans to focus on the construction of a sustainable organizational structure that will be the foundation of growth by actively recruiting personnel, mainly in the management and young consultant sectors.
In the fiscal year ending September 2024, while the normalcy of social and economic activities is progressing due to the relaxation of regulations related to the COVID-19 pandemic, a situation of continuing uncertainty is anticipated due to price increases caused by a weak yen and resource shortages. However, the company group provides services to customers in various industries, mainly in the manufacturing industry, and does not have a structure that is dependent on specific industries or business models. Therefore, the impact on performance associated with restrictions on social and economic activities to prevent the spread of COVID-19 and the lifting of such restrictions is expected to be limited. In addition, Japanese companies are facing issues such as promoting innovation, improving productivity, and creating customers in the face of a declining population, and it is expected that demand related to marketing services that solve these issues will steadily increase.
(Written by FISCO guest analyst Nozomi Kokushige).