February 13, 2025
Summary of Consolidated Financial Results for the
First Three Quarters of the Fiscal Year Ending March 31, 2025 [Japan GAAP]
Company: Hibiya Engineering, Ltd.
Stock exchange listing: Tokyo Stock Exchange (Prime Market)
Stock code: 1982
URL: https://www.hibiya-eng.co.jp
Representative Director: Hidetaka Nakagita, President and CEO
Contact: Akira Domon, Executive Officer, Manager of IR and PR Office, Administration Division
Tel: 03-3454-2720
Date of commencement of dividend payment: -
Supplementary explanatory documents: | Yes |
Earnings presentation: | No |
(Yen in millions, rounded down, figures in parentheses indicate negative amounts or percentages.)
1. Financial results for the first three quarters of the fiscal year ending March 2025 (April 1, 2024-December 31, 2024)
(1) Result of operations (Consolidated, year-to-date) | (Percentage figures represent year on year changes.) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
First three quarters ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
December 31, 2024 | 56,799 | 5.0 | 3,529 | 78.2 | 4,100 | 55.1 | 3,106 | 65.8 | |
December 31, 2023 | 54,095 | 5.5 | 1,980 | (33.2) | 2,643 | (26.1) | 1,874 | (21.9) | |
Note: Comprehensive income: First three quarters of FY3/25: | 1,918 million yen | [(50.0)%] |
First three quarters of FY3/24: | 3,837 million yen | [86.0%] |
Basic earnings per share | Diluted earnings per share | ||||
First three quarters ended | Yen | Yen | |||
December 31, 2024 | 138.91 | 138.32 | |||
December 31, 2023 | 82.18 | 81.85 | |||
(2) Financial position (Consolidated) | |||||
Total assets | Net assets | Equity ratio | Net assets per share | ||
As of | Million yen | Million yen | % | Yen | |
December 31, 2024 | 88,517 | 68,389 | 75.9 | 3,045.25 | |
March 31, 2024 | 98,226 | 69,914 | 70.0 | 3,056.74 | |
Reference: Equity (Shareholders equity + Accumulated other comprehensive income): As of December 31, 2024: | 67,207 million yen |
As of March 31, 2024: | 68,771 million yen |
2. Dividends
Dividend per share | |||||
End of 1Q | End of 2Q | End of 3Q | End of FY | Annual | |
Yen | Yen | Yen | Yen | Yen | |
FY3/24 | ‒ | 43.00 | ‒ | 43.00 | 86.00 |
FY3/25 | ‒ | 44.00 | - | ||
FY3/25 (Forecast) | ‒ | 44.00 | 88.00 | ||
Note: Change in the forecast of dividends from the latest announcement: No
3. Consolidated forecast for the fiscal year ending March 2025 (April 1, 2024-March 31, 2025)
(Percentage figures represent year on year changes)
Profit attributable to | Basic | ||||||||||
Net sales | Operating profit | Ordinary profit | earnings per | ||||||||
owners of parent | |||||||||||
share | |||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 91,000 | 8.6 | 5,900 | 2.8 | 6,600 | 2.4 | 4,600 | (4.2) | 204.46 | ||
Note: Change in the forecast from the latest announcement: No
- Notes
- Changes in significant subsidiaries (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): No
- Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: No
- Changes in accounting principles and estimates, and retrospective restatement
- Changes due to revision of accounting standards: Yes
- Changes other than in (a): No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Number of shares outstanding (common shares)
- Shares issued (including treasury shares)
As of December 31, 2024: 23,756,321 | As of March 31, 2024: | 23,756,321 |
(b) Treasury shares | ||
As of December 31, 2024: 1,686,652 | As of March 31, 2024: | 1,258,110 |
(c) Average number of shares outstanding for the period | ||
Period ended December 31, 2024: 22,365,482 | Period ended December 31, 2023: | 22,805,712 |
Review of the attached quarterly consolidated financial statements by certified public accountants or an audit firm: None
Forward-looking statements, important notes, etc.
The forward-looking statements such as the forecasts of financial results stated in this report are based on the information currently available to the Company and certain assumptions that the Company judges as rational. These statements are not guarantees of future performance. Actual results may be materially different from the above forecasts for a number of reasons. For more information about these assumptions and other conditions that form the basis of these forecasts, please see page 2 of the Supplementary Information, "1. Results of Operations, (3) Forecast for the fiscal year ending March 31, 2025."
Index for Supplementary Information | ||
1. Results of Operations | - 2 - | |
(1) | Overview of quarterly consolidated business performance | - 2 - |
(2) | Overview of quarterly financial position | - 2 - |
(3) | Forecast for the fiscal year ending March 2025 | - 2 - |
2. Quarterly Consolidated Financial Statements and Important Notes | - 3 - | |
(1) | Quarterly consolidated balance sheet | - 3 - |
(2) | Quarterly consolidated statement of income and | |
consolidated statement of comprehensive income | - 5 - | |
(Quarterly consolidated statement of income) | - 5 - | |
(Quarterly consolidated statement of comprehensive income) | - 6 - | |
(3) | Notes to quarterly consolidated financial statements | - 7 - |
(Notes on changes in accounting policies) | - 7 - | |
(Notes on segment information, etc.) | - 7 - | |
(Notes on significant change in shareholders' equity) | 8 | |
(Notes on going concern assumptions) | 8 | |
(Notes on quarterly consolidated statement of cash flows) | 8 |
1. Results of Operations
-
Overview of quarterly consolidated business performance
During the first three quarters of the fiscal year ending March 31, 2025 (the "fiscal year under review"), the Japanese economy generally staged a gradual recovery, partly due to the effects of government policies amid improvements in the employment and income environment and in corporate earnings.
In the construction industry, government construction investment remained steady, while private-sector construction investment is expected to trend higher against the backdrop of solid corporate earnings, among other factors.
In these circumstances, the Hibiya Engineering Group worked to move forward with a range of initiatives in its 8th Medium-term Management Plan, such as the promotion of data center solutions and the enhancement of sales activities to acquire orders in line with the characteristics of areas, as well as the development of businesses with an eye on decarbonization and energy-saving.
In addition, it sought to build an internal environment to increase employee engagement, raised wages and starting salaries, and responded to regulations on the upper limit to overtime work, while simultaneously instituting structural reforms to promote the initiatives set out under the basic policy of the 8th Medium-term Management Plan. Furthermore, the Company opened "Data Center Trial Field" to verify next-gen cooling technologies for data centers and promote open innovation.
As a result of these initiatives, orders stood at 57,926 million yen (down 26.7% year on year), reflecting a strategical approach adopted by the Company in which it assessed the amount of order backlogs and the possibility of completing construction as planned from a range of perspectives.
Net sales rose by 5.0%, to 56,799 million yen, primarily attributable to steady progress in many construction projects that were carried over from the previous fiscal year.
On the profit front, gross profit was 10,140 million yen (up 22.1% year on year), operating profit came to 3,529 million yen (up 78.2%), and ordinary profit amounted to 4,100 million yen (up 55.1%), all reflecting an increase in the profitability of construction projects completed, as well as an improvement in the profits at the time of receiving orders. Profit attributable to owners of parent increased to 3,106 million yen (up 65.8% year on year) due in part to the sale of cross-shareholdings. - Overview of quarterly financial position
Assets
The Group's total assets at the end of the third quarter of the fiscal year under review stood at 88,517 million yen, a decrease of 9,708 million yen from the end of the previous fiscal year.
The main factors for the decreased assets were decreases of 2,934 million yen in cash and deposits, 6,530 million yen in notes receivable, accounts receivable from completed construction contracts and other due to construction fees collected, and 1,993 million yen in securities and investment securities due to the sale of cross-shareholdings.
Liabilities
At the end of the third quarter of the fiscal year under review, the Group's total liabilities amounted to 20,127 million yen, down 8,184 million yen from the end of the previous fiscal year.
The decline in liabilities is primarily due to decreases of 6,359 million yen in notes payable, accounts payable for construction contracts and other, in particular due to payments to suppliers and 989 million yen in income taxes payable due to tax payments made after the filing of tax returns.
Net assets
The Group's net assets totaled 68,389 million yen at the end of the third quarter of the fiscal year under review, a decrease of 1,524 million yen from the end of the previous fiscal year.
The decline in net assets is primarily due to decreases of 1,958 million yen in payment of dividends, 1,614 million yen in the acquisition of treasury shares, and 1,287 million yen mainly due to a decline in market value of listed stocks, which are partially offset by the posting of profit attributable to owners of parent of 3,106 million yen. - Forecast for the fiscal year ending March 2025
There is no change in the forecast for consolidated results of operations that was announced on May 14, 2024.
2. Quarterly Consolidated Financial Statements and Important Notes
- Quarterly consolidated balance sheet
(Million yen) | |||
Fiscal year ended | First three quarters ended | ||
March 31, 2024 | December 31, 2024 | ||
(As of March 31, 2024) | (As of December 31, 2024) | ||
Assets | |||
Current assets | |||
Cash and deposits | 23,956 | 21,021 | |
Notes receivable, accounts receivable from | 37,267 | 30,737 | |
completed construction contracts and other | |||
Securities | 7,999 | 6,993 | |
Costs on construction contracts in progress | 1,525 | 2,127 | |
Other | 357 | 1,483 | |
Allowance for doubtful accounts | (1) | (1) | |
Total current assets | 71,105 | 62,361 | |
Noncurrent assets | |||
Property, plant and equipment | 814 | 857 | |
Intangible assets | 259 | 230 | |
Investments and other assets | |||
Investment securities | 20,917 | 19,930 | |
Other | 5,186 | 5,184 | |
Allowance for doubtful accounts | (58) | (46) | |
Total investments and other assets | 26,045 | 25,067 | |
Total noncurrent assets | 27,120 | 26,155 | |
Total assets | 98,226 | 88,517 | |
(Million yen) | |||
Fiscal year ended | First three quarters ended | ||
March 31, 2024 | December 31, 2024 | ||
(As of March 31, 2024) | (As of December 31, 2024) | ||
Liabilities | |||
Current liabilities | |||
Notes payable, accounts payable for | 16,269 | 9,909 | |
construction contracts and other | |||
Income taxes payable | 1,466 | 476 | |
Advances received on construction contracts | 1,401 | 1,084 | |
in progress | |||
Provision for bonuses | 2,878 | 1,357 | |
Provision for warranties for completed | 147 | 146 | |
construction | |||
Provision for loss on construction contracts | 280 | 143 | |
Other | 3,190 | 4,412 | |
Total current liabilities | 25,634 | 17,530 | |
Noncurrent liabilities | |||
Retirement benefit liability | 960 | 868 | |
Other | 1,716 | 1,728 | |
Total noncurrent liabilities | 2,677 | 2,597 | |
Total liabilities | 28,311 | 20,127 | |
Net assets | |||
Shareholders' equity | |||
Share capital | 5,753 | 5,753 | |
Capital surplus | 6,140 | 6,140 | |
Retained earnings | 51,516 | 52,658 | |
Treasury shares | (2,614) | (4,122) | |
Total shareholders' equity | 60,795 | 60,428 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale | 8,350 | 7,062 | |
securities | |||
Remeasurements of defined benefit plans | (374) | (283) | |
Total accumulated other comprehensive | |||
7,975 | 6,778 | ||
income | |||
Share acquisition rights | 146 | 177 | |
Non-controlling interests | 996 | 1,004 | |
Total net assets | 69,914 | 68,389 | |
Total liabilities and net assets | 98,226 | 88,517 | |
- Quarterly consolidated statement of income and consolidated statement of comprehensive income
(Quarterly consolidated statement of income) (For the first three quarters)
(Million yen) | |||
First three quarters ended | First three quarters ended | ||
December 31, 2023 | December 31, 2024 | ||
(April 1, 2023-December 31, 2023) | (April 1, 2024-December 31, 2024) | ||
Net sales | 54,095 | 56,799 | |
Cost of sales | 45,789 | 46,659 | |
Gross profit | 8,305 | 10,140 | |
Selling, general and administrative expenses | 6,324 | 6,611 | |
Operating profit | 1,980 | 3,529 | |
Non-operating income | |||
Interest income | 23 | 34 | |
Dividend income | 381 | 396 | |
Gain on investments in silent partnerships | 209 | 74 | |
Insurance income | 10 | ‒ | |
Other | 42 | 71 | |
Total non-operating income | 667 | 577 | |
Non-operating expenses | |||
Other | 4 | 5 | |
Total non-operating expenses | 4 | 5 | |
Ordinary profit | 2,643 | 4,100 | |
Extraordinary income | |||
Gain on sale of investment securities | ‒ | 520 | |
Reversal of allowance for doubtful accounts | 36 | ‒ | |
Total extraordinary income | 36 | 520 | |
Profit before income taxes | 2,679 | 4,621 | |
Income taxes - current | 192 | 928 | |
Income taxes - deferred | 579 | 554 | |
Total income taxes | 771 | 1,482 | |
Profit | 1,907 | 3,139 | |
Profit attributable to non-controlling interests | 33 | 32 | |
Profit attributable to owners of parent | 1,874 | 3,106 | |
(Quarterly consolidated statement of comprehensive income) (For the first three quarters)
(Million yen) | ||
First three quarters ended | First three quarters ended | |
December 31, 2023 | December 31, 2024 | |
(April 1, 2023-December 31, 2023) | (April 1, 2024-December 31, 2024) | |
Profit | 1,907 | 3,139 |
Other comprehensive income | ||
Valuation difference on available-for-sale | 1,859 | (1,311) |
securities | ||
Remeasurements of defined benefit plans, | 70 | 90 |
net of tax | ||
Total other comprehensive income | 1,930 | (1,220) |
Comprehensive income | 3,837 | 1,918 |
Comprehensive income attributable to: | ||
Owners of parent | 3,812 | 1,909 |
Non-controlling interests | 25 | 8 |
- Notes to quarterly consolidated financial statements
(Notes on changes in accounting policies)
Application of Accounting Standard for Current Income Taxes, etc.
The Company has applied Accounting Standard for Current Income Taxes (Accounting Standards Board of Japan
(ASBJ) Statement No. 27, October 28, 2022; hereinafter referred to as the "Revised Accounting Standard 2022") effective from beginning of the first quarter of the fiscal year under review.
The amendment to categories in which current income taxes should be recorded (taxes on other comprehensive income) follows the transitional treatment prescribed in the proviso of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment prescribed in the proviso (2) of paragraph 65-2 of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; hereinafter referred to as the "Revised Implementation Guidance 2022"). This change in accounting policies has no impact on the quarterly consolidated financial statements.
For the amendment related to the revised accounting treatment for consolidated financial statements when gains or losses on sale of shares in subsidiaries resulting from transactions between consolidated companies were deferred for tax purposes, the Revised Implementation Guidance 2022 has been adopted from the beginning of the first quarter of the fiscal year under review. This change in accounting policies is applied retrospectively, and quarterly consolidated financial statements and consolidated financial statements for the previous year are after retrospective application. The change has no impact on the quarterly consolidated financial statements for the same quarter of the previous fiscal year and the consolidated financial statements for the previous fiscal year.
(Notes on segment information, etc.)
First three quarters ended December 31, 2023 (April 1, 2023-December 31, 2023) Information about net sales and profit or loss by reportable segment
(Million yen) | ||||||
Amount on | ||||||
Equipment | Equipment | Adjustments | the quarterly | |||
Construction | Total | consolidated | ||||
Sales | Manufacturing | (Note 1) | statement of | |||
income | ||||||
(Note 2) | ||||||
Net sales | ||||||
Goods or service | ||||||
transferred at a point in | 5,155 | 4,842 | 2,821 | 12,820 | ‒ | 12,820 |
time (Note 3) | ||||||
Product or service | 41,275 | ‒ | ‒ | 41,275 | ‒ | 41,275 |
transferred over time | ||||||
Revenue from contracts | 46,430 | 4,842 | 2,821 | 54,095 | ‒ | 54,095 |
with customers | ||||||
Outside customers | 46,430 | 4,842 | 2,821 | 54,095 | ‒ | 54,095 |
Intersegment internal | 0 | 2,475 | 456 | 2,932 | (2,932) | ‒ |
sales/transfers | ||||||
Total | 46,430 | 7,318 | 3,278 | 57,028 | (2,932) | 54,095 |
Segment profit | 1,324 | 273 | 373 | 1,972 | 8 | 1,980 |
Notes 1. Adjustment of segment profit of 8 million yen is mainly due to intersegment transactions eliminations.
- Segment profit is reconciled to operating profit in the quarterly consolidated statement of income.
- Contracts that revenue recognized upon completion of the obligation to the customers are included in product or service transferred at a point in time in accordance with the alternative measures stipulated in paragraph 95 of Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30).
First three quarters ended December 31, 2024 (April 1, 2024-December 31, 2024)
Information about net sales and profit or loss by reportable segment
(Million yen) | ||||||
Amount on | ||||||
Equipment | Equipment | Adjustments | the quarterly | |||
Construction | Total | consolidated | ||||
Sales | Manufacturing | (Note 1) | statement of | |||
income | ||||||
(Note 2) | ||||||
Net sales | ||||||
Goods or service | ||||||
transferred at a point in | 5,957 | 4,605 | 1,593 | 12,156 | ‒ | 12,156 |
time (Note 3) | ||||||
Product or service | 44,643 | ‒ | ‒ | 44,643 | ‒ | 44,643 |
transferred over time | ||||||
Revenue from contracts | 50,601 | 4,605 | 1,593 | 56,799 | ‒ | 56,799 |
with customers | ||||||
Outside customers | 50,601 | 4,605 | 1,593 | 56,799 | ‒ | 56,799 |
Intersegment internal | ‒ | 2,922 | 402 | 3,325 | (3,325) | ‒ |
sales/transfers | ||||||
Total | 50,601 | 7,528 | 1,996 | 60,125 | (3,325) | 56,799 |
Segment profit (loss) | 3,267 | 280 | (27) | 3,519 | 9 | 3,529 |
Notes 1. Adjustment of segment profit (loss) of 9 million yen is mainly due to intersegment transactions eliminations.
- Segment profit (loss) is reconciled to operating profit in the quarterly consolidated statement of income.
- Contracts that revenue recognized upon completion of the obligation to the customers are included in product or service transferred at a point in time in accordance with the alternative measures stipulated in paragraph 95 of Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30).
(Notes on significant change in shareholders' equity) No
(Notes on going concern assumptions) No
(Notes on quarterly consolidated statement of cash flows)
The Company did not prepare quarterly consolidated statements of cash flows for the first three quarters of the fiscal year under review. Depreciation (including amortization of intangible assets) for the first three quarters of the fiscal year under review is as follows.
First three quarters ended December 31, 2023 (April 1, 2023‒December 31, 2023)
First three quarters ended December 31, 2024 (April 1, 2024‒December 31, 2024)
Depreciation | 145 million yen | 183 million yen |