■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).
1. Performance Outlook for March 2025
Takuma's performance forecast for the fiscal year ending March 2025 is expected to have a revenue of ¥14.3 billion, a 4.1% decrease compared to the previous year, operating profit of ¥1.12 billion, a 9.5% increase, ordinary profit of ¥1.2 billion, a 7.5% increase, and a net income attributable to the parent company's shareholders of ¥880 million, a 0.5% increase.
The company aims to achieve a record-high revenue of ¥230 billion, surpassing the ¥192.2 billion in orders received in the fiscal year ending March 2022. While planning to receive these orders for stable demand for updates and long service life for waste treatment plants and other products, the forecast is for a decrease in revenue due to a decrease in the environmental and energy (domestic) segment.
Due to the large seasonal variations in progress and delivery of projects, mainly during the fourth quarter, the company group manages its business performance on an annual basis. Correspondingly, performance, such as sales during the fourth quarter, increases compared to other quarters.
2. Medium to long-term growth strategy
The company group's long-term vision, "Vision2030," aims to achieve an ordinary profit of ¥20 billion in the fiscal year ending March 2031 as a leading company that solves ESG issues, focusing on renewable energy and environmental conservation.
The 13th Mid-Term Management Plan achieved its quantitative targets, exceeding its goal of ordinary profit of ¥36 billion with ¥36.4 billion, and also with orders received in the aggregate over 3 years totaling ¥521.3 billion. Although the fluctuation of performance due to the number of EPC cases and completion times existed, the overall trend of orders received, revenue, and operating profit was firm, and better results were achieved than planned, establishing the foundation for achieving "Vision2030."
(1) Long-term Vision "Vision2030"
The company contributes to the realization of a sustainable society by solving customer and social issues with useful technologies and services, sustainably growing through repeated cycles and tackling ESG issues. The company aims to achieve an ordinary profit of ¥20 billion in the fiscal year ending March 2031 as a leading company focusing on renewable energy and environmental conservation. The long-term vision toward 2030 is "Vision2030."
(2) 14th Mid-Term Management Plan
The 14th Mid-Term Management Plan is an important step towards achieving "Vision2030." It focuses on addressing challenges such as lack of resources identified in the previous mid-term management plan, establishing a revenue model that maximizes the use of general waste disposal plants and stocks. The business strategy aims to maintain and expand the market position of the EPC business, expand the revenue of the residential thermal energy, equipment and system business, create a track record in international business, promote strategic M&A and create new businesses. To further strengthen the management foundation, the plan also focuses on securing and nurturing human resources, knowledge management, compliance and risk management, and aims for sustainable growth toward the realization of "Vision2030." The plan sets new target figures for order intake and ROE. It aims to achieve an order intake of ¥600 billion, revenue of ¥460 billion, operating income of ¥35.6 billion, and just over ¥38 billion in ordinary profit over three years. The ROE is set to be 9% or more in March 2027. The final fiscal year in March 2027 aims for revenue of ¥165 billion, operating income of ¥13.2 billion, and ordinary profit of ¥14 billion. Although expecting an increase in personnel expenses and R&D expenses, an increase in profit is anticipated due to the increase in gross profit from the EPC business and stock-type businesses. Furthermore, the company aims to improve corporate value by implementing cash allocation that focuses on growth investments and shareholder returns. Specifically, the plan has allocated ¥5 billion to capital investment, ¥6 billion to R&D investment, ¥10 billion to M&A and business investments, totaling ¥21 billion, to achieve further growth and improve profitability.
(Reported by FISCO guest analyst Hiroshi Nakayama)