■Earnings Forecast
1. Earnings forecast for the fiscal year ending 2024/10
Regarding consolidated financial results for the fiscal year ending 2024/10, CAICA DIGITAL (loss of 3,889 million yen) left the initial forecast unchanged, and anticipated a surplus with sales of 6,302 million yen, an increase of 16.5% from the previous fiscal year, operating income of 169 million yen (loss of 2,378 million yen in the previous fiscal year), ordinary income of 162 million yen (loss of 2,560 million yen), and net income attributable to parent company shareholders of 137 million yen (loss of 3,889 million yen) It's packed.
As for sales, continuing from the first half, the “IT service business” is expected to expand steadily against the backdrop of a strong order acceptance environment.
In terms of profit, significant profit and loss improvements (surplus conversion) will also be realized due to reductions in sales and administration expenses associated with the restructuring of the “financial services business” (down 2,199 million yen from the previous fiscal year) and growth in the “IT service business.” It seems that the impact of unplanned devaluation of crypto assets will be covered by growth in the “IT service business” and acquisition of projects with high profit margins, etc.
2. Our view
In order to achieve the company's full-year forecast, second-half sales of 3436 million yen and operating income of 365 million yen will be required. Therefore, it must be said that it is a high hurdle (especially in terms of profit), but if you take into account the situation where high-profit projects have been obtained in the “IT service business” where orders are strong, it is believed that at least a year-round surplus conversion is sufficiently possible. If the SI business from DX consulting to solution introduction and maintenance/operation gets on track due to cooperation with leading vendors certified as partners, etc., developments such as how close they can be to achieving goals can be expected can also be considered. What is noteworthy is that in addition to further raising the level of the “IT service business” through cooperation with vendors and strengthening development systems, etc., it is an effort to improve utility in “Zaif INO” and Kaikacoin, which are expected to be the axis of medium- to long-term earnings, and I would like to follow up on how they will contribute to an increase in profitability from next fiscal year onwards, which is the second year of the medium-term management plan. Also, when it comes to entering the Korean market, where crypto assets and NFTs are more active than Japan, it can be said that it is exciting to see in what form business will start up.
(Written by FISCO Visiting Analyst Ikuo Shibata)