■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).
Outline of financial estimates for the consolidated performance of the fiscal year ending March 2025. AIAI Group's (6557) financial estimates for the fiscal year ending March 2025 are as follows: revenue of 12100 million yen, an increase of 2.4% from the previous year, operating profit of 500 million yen, a decrease of 6.1% from the previous year, ordinary profit of 600 million yen, a decrease of 31.5% from the previous year, and net income attributable to the parent company's shareholders of 400 million yen, an increase of 13.2% from the previous year. AIAI NURSERY plans to open three new facilities and AIAI PLUS plans to open one new facility (already opened on April 1, 2024). AIAI PLUS was opened for the first time in Kanagawa prefecture. As a result, AIAI PLUS will be added to all prefectures where AIAI NURSERY is located.
Japan Hume (5262) is expected to have consolidated financial results of 37.0 billion yen in revenue (+9.7% YoY), 170 million yen in operating profit (+23.0% YoY), 260 million yen in ordinary income (+8.7% YoY), and 200 million yen in net income (+4.6% YoY) for the fiscal year ending March 2025. The sewage-related business is leading growth, and the basic business is also progressing smoothly, leading to an increase in revenue and profit.
Segment-wise, the sales of the basic business are expected to be 23,320 million yen (+6.4% YoY) with an operating profit (before adjusting for all company expenses) of 1,200 million yen (+3.3% YoY). The sales of sewage-related businesses are expected to be 12,130 million yen (+18.1% YoY) with an operating profit of 1,870 million yen (+47.0% YoY). The sales of photovoltaic and real estate businesses are expected to be 1,470 million yen (-0.1% YoY) with an operating profit of 820 million yen (+0.6% YoY). The sales of the other business are expected to be 80 million yen (+18.2% YoY) with an operating profit of 60 million yen (+11.9% YoY). The basic business is expected to continue shipping and construction operations steadily in both the first and second halves of the year. The sewage-related business is expected to grow significantly due to an increase in shipping and construction for government civil engineering projects, following delays in orders in the previous year. The photovoltaic and real estate businesses and other businesses are also expected to continue to grow steadily.
Even though the overall market is slowing down, the company's orders have been increasing due to sales efforts, and there are expectations for improved profitability through improvements in selling prices and expanding high-value-added products, as well as reflected demand from sewage-related business' high-value-added products in the previous year. We believe that the company's forecast may exceed expectations if these points are considered.
(Authored by FISCO guest analyst Masanobu Mizuta)