Key Points from the Report for Investor Actions
1. Financial Year and Reporting Date
- Financial Year: The report covers the fiscal year ending March 31, 2024.
- Report Approval Date: The English consolidated financial statements were approved on September 24, 2024.
2. Company Performance
- Net Sales: The company reported net sales of ¥793,264 million for the fiscal year ended March 31, 2024, up from ¥711,810 million in the previous year.
- Operating Profit: Operating profit increased to ¥51,060 million compared to ¥44,415 million the previous year.
- Net Profit: Profit attributable to owners of the parent was ¥32,571 million, slightly down from ¥33,487 million in the previous year.
- Earnings per Share (EPS): Basic EPS stood at ¥130.51, up from ¥129.35 in the previous year.
3. Dividend Information
- Dividends: The company declared dividends amounting to ¥20,573 million for the year.
4. Notable Business Initiatives and Special Activities
- Acquisition of JWD Holdings: The company acquired JWD Holdings3 K.K., a leader in wind power generation, reflecting the company’s focus on expanding its presence in renewable energy. This acquisition is a major strategic move aimed at capturing growth opportunities in wind power, positioning the company as a prominent player in Japan’s renewable energy market.
5. Liabilities
- Increased Borrowings: There was a significant increase in borrowings, with short-term borrowings increasing to ¥275,951 million from a net decrease of ¥51,172 million in the previous year.
6. Cash Flow
- Operating Cash Flow: The company generated a net cash flow from operating activities of ¥38,916 million, down from ¥102,764 million in the previous year.
Investor Recommendations
For Investors Currently Holding the Stock:
- Hold the Stock: Given the company’s strong financial position, steady revenue growth, and strategic investments in the renewable energy sector (e.g., the acquisition of JWD), investors should consider holding their position. The company is investing in long-term growth areas, which could enhance future profitability.
For Investors Not Currently Holding the Stock:
- Consider Buying: The company’s significant growth in the renewable energy sector, paired with increasing profits and a positive outlook for the wind power market, presents a good opportunity for new investors seeking exposure to sustainable energy markets.
Special Notes for Investors
- Strategic Shift to Renewables: Investors should take note of the company’s growing involvement in the renewable energy market, particularly wind power. This shift could lead to increased profitability in the long term, especially in the context of global trends toward sustainability.
Dividend Information
- The company declared a dividend payout of ¥20,573 million during the fiscal year.
Disclaimer
This recommendation is based solely on the information contained in the company’s financial report. Investors are encouraged to consider their financial objectives and consult a financial advisor before making investment decisions.
