■Summary

Intertrade <3747> is a company focused on financial solution services such as stock trading systems for securities companies and Foreign Exchange (FX) systems. In addition to the "Financial Solutions Business," which accounts for about 80% of revenue, the company also operates the "Business Solutions Business," centered on IT support and group management solution system development and sales, as well as the "Health Care Business," which develops and sells health foods and cosmetics made from functional ingredients like Hanabiratake. The trading systems for securities companies provided by the Financial Solutions Business are almost monopolized by small local securities firms.

1. Overview of performance for the fiscal year ending September 2024

For the consolidated performance for the fiscal year ending September 2024, revenue is expected to be 1,849 million yen (down 8.1% from the previous period), operating profit of 80 million yen (down 59.8%), recurring loss of 159 million yen (with a profit of 1 million yen the previous period), and a net loss attributable to parent company shareholders of 97 million yen (with a profit of 36 million yen the previous period), falling short of initial plans in all items. The primary Financial Solutions Business underperformed, and while the growth of the Health Care Business was expected to drive revenue increases according to the initial plan, the failure to achieve the functional labeling of the "IT Hanabiratake" supplements during the period negatively impacted operational progress as planned.

2. Performance Outlook for the Fiscal Year Ending September 2025

For the fiscal year ending September 2025, revenue is projected to be 2,160 million yen (up 16.8% from the previous period), operating profit of 110 million yen (up 37.1%), recurring loss of 40 million yen (compared to a loss of 159 million yen the previous period), and a net income attributable to parent company shareholders of 10 million yen (after a loss of 97 million yen the previous period). This is based on the realization of the functional labeling of the "IT Hanabiratake" supplements. If the functional labeling is achieved, there may be signs of expansion in the Health Care Business in the latter half of the year.

3. Future Management Plans

(株)Digital Asset Markets, which operates an Exchange linked to the prices of gold and silver (hereinafter referred to as Digital Asset Markets), is currently advancing the launch of a data protection (DP) business to contribute to early profitability. Although this business will not take off suddenly, attention should be paid to the disclosures based on future business progress.

■Key Points

Digital Asset Markets, responsible for the Web3 business, continues to prioritize investment.

Digital Asset Markets is also making progress in launching its Data Protection (DP) business.

There are expectations for entering a growth phase with the functional food labeling of 'IT is Ramen Mushroom' supplements.

Web3: Refers to a decentralized internet based on Blockchain Technology, also known as the next-generation internet.

(Writer: FISCO analyst Tomoichi Murase)