(7804) B&P - New Analyst Report 6/28

◆ Company Overview

・B&P (hereafter, the company) provides inkjet output services using large format inkjet printers for commercial use.

◆ 2nd quarter cumulative period settlement for the fiscal year ending 2014/10

・The financial results for the cumulative period of the 2nd quarter (hereinafter referred to as the first half) of the 24/10 fiscal year were sales of 1,629 million yen (up 4.5% from the same period last year) and operating income of 255 million yen (up 15.9% from the same period). There were also projects that were off schedule in the 3rd quarter, but sales increased mainly in sales promotion advertisements, making it the highest sales ever for the first half. Also, improvements in gross profit margin progressed due to productivity improvements, etc.

◆ Earnings forecast for the fiscal year ending 24/10

・Regarding financial results for the 24/10 fiscal year, the company plans sales of 3,400 million yen (up 7.1% from the previous fiscal year) and operating profit of 492 million yen (up 9.0% from the same period).

・The Securities Research Center (hereafter, the Center) predicted sales of 3,400 million yen (up 7.1% from the previous fiscal year) and operating profit of 509 million yen (up 12.7% from the same period) for the 24/10 fiscal year, and profit at a level higher than the company plan. Continuing from the first half, an increase in sales centered on sales promotion advertisements was anticipated, but contributions from sales expansion other than inkjet printing services were also factored in.

◆ Future highlights

・Our center predicted an 8.8% increase in sales compared to the previous fiscal year for the 25/10 fiscal year, a 9.5% increase in sales for the 26/10 fiscal year, 15.4% for the 25/10 fiscal year, and 16.3% for the 26/10 fiscal year. Our center's predictions do not anticipate the implementation of M&A, which the company is actively working on.

・The company has announced a medium-term management plan for the period 24/10 to 26/10. The target sales for the 26/10 fiscal year is 5,000 million yen, but it is assumed that M&A will be implemented. The company aims for a system that provides one-stop sales promotion and marketing solutions, and has a policy of expanding market share, enhancing functions, and expanding regions. For the time being, I would like to keep an eye on the progress of these measures.