■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).
Outline of financial estimates for the consolidated performance of the fiscal year ending March 2025. AIAI Group's (6557) financial estimates for the fiscal year ending March 2025 are as follows: revenue of 12100 million yen, an increase of 2.4% from the previous year, operating profit of 500 million yen, a decrease of 6.1% from the previous year, ordinary profit of 600 million yen, a decrease of 31.5% from the previous year, and net income attributable to the parent company's shareholders of 400 million yen, an increase of 13.2% from the previous year. AIAI NURSERY plans to open three new facilities and AIAI PLUS plans to open one new facility (already opened on April 1, 2024). AIAI PLUS was opened for the first time in Kanagawa prefecture. As a result, AIAI PLUS will be added to all prefectures where AIAI NURSERY is located.
Phoenix Bio's consolidated performance for the fiscal year ending in March 2025 is expected to see a significant increase in revenue by 23.7% to 2,121 million yen compared to the previous year, operating profit of 214 million yen (compared to 11 million yen in the previous year), ordinary profit of 214 million yen, a 393.6% increase, and net income attributable to parent company shareholders of 201 million yen, a 662.3% increase. The company is anticipating substantial revenue and profit growth due to the active development of new drugs using novel modalities such as nucleic acid pharmaceuticals and gene therapy, as well as the anticipated significant expansion of sales of the main products PXB Mouse and PXB-cells related products, and contract testing services in the field of safety, etc. The breakdown of revenue is as follows: in terms of revenue by sector, the sales in the pharmacology field are expected to increase by 75.5% to 279 million yen, while revenue in the safety field is expected to increase by 18.4% to 1,842 million yen. The revenue by service line is planned to be 1,573 million yen for product sales, a 19.2% increase (with PXB Mouse sales at 1,362 million yen, a 20.0% increase, and PXB-cells related sales at 211 million yen, a 14.1% increase), and 549 million yen for contract testing services, a 38.6% increase. The assumed exchange rate is 1 US dollar = 145 yen.
In terms of profitability, it is expected that the significant increase in revenue will absorb the increase in production costs and operating expenses. The cost of sales is planned to increase by 26.1% compared to the previous year. This is due to the increase in personnel costs caused by an increase in staff and salary increases, as well as an increase in consumable expenses due to increased production and rising materials prices. Selling and administrative expenses are planned to increase by 5.9%. This is due to the increase in personnel costs caused by increased hiring and salary increases at the US subsidiary, as well as an increase in freight costs for mouse transportation and an increase in research and development expenses due to the hiring of researchers to be dispatched to joint research partners.
In terms of half-year breakdown, the first half of the fiscal year saw a loss of 972 million yen in revenue, a loss of 5 million yen in operating profit, a loss of 5 million yen in ordinary profit, and a loss of 8 million yen in net income attributable to parent company shareholders. The second half of the fiscal year is expected to be focused, with revenue of 1,149 million yen, operating profit of 219 million yen, ordinary profit of 219 million yen, and net income attributable to parent company shareholders of 209 million yen. The company expects an increase in orders for the second half of the year.
(Authored by FISCO guest analyst Masanobu Mizuta)