■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).
It is expected that the consolidated performance of Tensho Electric Industry Co., Ltd. <6776> for the fiscal year ending March 2025 will be revenue of JPY 300,000 million (an increase of 11.5% compared to the previous year), operating profit of JPY 1,400 million (an increase of 31.7% compared to the previous year), ordinary profit of JPY 1,400 million (an increase of 5.8% compared to the previous year), and net income attributable to parent company shareholders of JPY 900 million (a decrease of 5.2% compared to the previous year).
Despite the presence of numerous uncertainties such as the situation in Russia and Ukraine and the power struggle between the USA and China, it is expected that automobile production will continue to recover, and that operating profit will see a significant increase due to factors such as increased operation of the Mexico second plant in the subsidiary in the USA. As for ordinary profit, the increase in profit is expected to be small as there is no expectation of exchange rate gains. As for net income attributable to parent company shareholders, a decrease in profit is expected due to the dropping of compensation and subsidies that occurred in the previous year.
The planned investment amount for facilities is around JPY 250 million, returning to the normal level. The main investment will be in painting, which is planned for expansion in the future, in addition to the usual molds and molding machines. The exact depreciation amount is not disclosed, but it seems to be around JPY 200-230 million. Assuming that the depreciation cost is JPY 220 million, it is expected that the operating profit before depreciation will be JPY 360 million (an increase of 9.3% compared to the previous year)
(Written by FISCO guest analyst Noboru Terashima)