[Translation for reference only]
ENGLISH TRANSLATION OF JAPANESE-LANGUAGE DOCUMENT
This is an English translation of the original Japanese-language document and is provided for convenience only. In all cases, the Japanese-language original shall take precedence.
July 31, 2024
Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2025
Company name: | MEISEI INDUSTRIAL CO., LTD. |
Listing: | Tokyo Stock Exchange, Prime |
Securities code: | 1976 |
URL: | https://www.meisei-kogyo.co.jp/en/ |
Representative: | Tetsuji Yanase, Representative Director, President |
Inquiries: | Atsuo Tanaka, Executive Officer, General Manager of Finance Division |
TEL: +81-6-6447-0275 |
Scheduled date to commence dividend payments: | － |
Preparation of supplementary material on financial results: | None |
Holding of financial results presentation meeting: | None |
(Note: Millions of yen with fractional amounts discarded, unless otherwise noted)
1. Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2025 (from April 1, 2024 to June 30, 2024)
- Consolidated operating results
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
June 30, 2024 | 14,812 | 18.2 | 1,526 | 87.9 | 1,822 | 85.2 | 1,271 | 58.0 | ||
June 30, 2023 | 12,534 | 4.0 | 812 | (25.4) | 984 | (23.4) | 804 | (4.1) | ||
Note: Comprehensive income | ||||||||||
Three months ended June 30, 2024: ¥2,591 million [149.0%] | ||||||||||
Three months ended June 30, 2023: ¥1,040 million [2.5%] | ||||||||||
Net income per share | Diluted net income per | |||||||||
share | ||||||||||
Three months ended | Yen | Yen | ||||||||
June 30, 2024 | 26.05 | － | ||||||||
June 30, 2023 | 16.15 | － | ||||||||
(2) Consolidated financial position | ||||||||||
Total assets | Net assets | Equity-to-asset ratio | Net assets per share | |||||||
As of | Millions of yen | Millions of yen | % | Yen | ||||||
June 30, 2024 | 84,174 | 64,449 | 76.0 | 1,310.49 | ||||||
March 31, 2024 | 84,432 | 63,868 | 75.1 | 1,299.12 | ||||||
Reference: Shareholders’ equity | ||||||||||
As of June 30, 2024: | ¥63,941 million | |||||||||
As of March 31, 2024: | ¥63,387 million |
Meisei Industrial Co., Ltd.
2. Cash Dividends
Cash dividends per share | ||||||||
First quarter- | Second quarter- | Third quarter- | Fiscal year-end | Annual | ||||
end | end | end | ||||||
Fiscal year ended/ending | Yen | Yen | Yen | Yen | Yen | |||
March 31, 2024 | – | 14.00 | – | 41.00 | 55.00 | |||
March 31, 2025 | – | |||||||
March 31, 2025 (Forecast) | 15.00 | – | 26.00 | 41.00 | ||||
Notes: 1. Revisions to the cash dividend forecasts most recently announced: None
2. The year-end dividend for the year ended March 31, 2024 comprises an ordinary dividend of 34.00 yen and a commemorative dividend of 7.00 yen.
3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income | |||||
owners of parent | per share | ||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Six months ending | |||||||||
September 30, 2024 | 26,400 | 2.6 | 2,880 | 2.9 | 3,050 | (2.2) | 2,120 | 0.1 | 43.45 |
Fiscal year ending | |||||||||
March 31, 2025 | 58,000 | (3.9) | 7,200 | (10.7) | 7,450 | (12.9) | 5,200 | (16.7) | 106.57 |
Note: Revisions to the earnings forecasts most recently announced: None
* Notes
- Significant changes in scope on consolidation during the period: None
- Application of special accounting for preparing quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates and restatements of prior period financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards and other regulations: None
b. Changes in accounting policies due to other reasons: | None |
c. Changes in accounting estimates: | None |
d. Restatements of prior period financial statements after error corrections: | None |
- Number of issued shares (common shares)
a. Total number of issued shares at end of period (including treasury shares)
As of June 30, 2024
As of March 31, 2024
56,386,718 shares
56,386,718 shares
b. Number of treasury shares at end of period
As of June 30, 2024
As of March 31, 2024
7,594,391 shares
7,594,300 shares
c. Average number of outstanding shares during period
Three months ended June 30, 2024 | 48,792,349 shares |
Three months ended June 30, 2023 | 49,799,317 shares |
Note: The figures stated for the number of treasury shares at end of period include shares of the Company that are held by a trust established to distribute shares to officers (Officers’ Share Distribution Trust). The calculation used to calculate the average number of outstanding shares during period excludes treasury shares, which include shares of the Company held by the Officers’ Share Distribution Trust.
Meisei Industrial Co., Ltd.
- Review of the attached quarterly consolidated financial statements by a certified public accountant or auditing firm: None
- Proper use of earnings forecasts and other special notes
(Caution regarding forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. These statements do not purport to be a promise by the Company to realize such statements. Actual business and other results may differ substantially due to various factors.
Please refer to “1. Overview of Results of Operations, (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements” on page 3 for forecast assumptions and notes of caution for usage.
Meisei Industrial Co., Ltd.
Contents of Attachments | |||
1. | Overview of Results of Operations | 2 | |
(1) | Results of Operations | 2 | |
(2) | Financial Position | 2 | |
(3) | Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements | 3 | |
2. | Quarterly Consolidated Financial Statements and Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheets | 4 |
- Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income (cumulative) | 6 |
Quarterly Consolidated Statements of Comprehensive Income (cumulative) | 7 |
(3) Notes to Quarterly Consolidated Financial Statements | 8 |
Going Concern Assumption | 8 |
Significant Changes in Shareholders’ Equity | 8 |
Notes to Quarterly Consolidated Statements of Cash Flows | 8 |
Notes to Segment Information | 8 |
Revenue Recognition | 9 |
3. Supplementary Information | 10 |
(1) Status of Orders Received, Net Sales and Balance of Orders | 10 |
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Meisei Industrial Co., Ltd.
1. Overview of Results of Operations
(1) Results of Operations
In the first quarter of the current fiscal year, the Japanese economy showed a slow recovery. The outlook remains uncertain because of high inflation including rising prices of raw materials, and prolonged inflation.
Orders received by the Meisei Industrial Group increased 1.7% from the previous fiscal year to 17,927 million yen. This was the result of the steady advancement in securing large projects outside Japan in the construction business. Net sales increased 18.2% to 14,812 million yen due to the large volume of maintenance work.
Due to higher sales, operating profit increased 87.9% to 1,526 million yen, ordinary profit increased 85.2% to 1,822 million yen, and profit attributable to owners of parent was up 58.0% to 1,271 million yen.
Business segment performance was as follows.
1) Construction Business
Net sales increased 18.7% to 13,161 million yen because of strong performance at large projects and maintenance work. Segment profit was up 65.3% to 1,422 million yen due to sales growth.
2) Boiler Business
Net sales increased 14.3% to 1,651 million yen because of steady progress at large projects. Segment profit was 100 million yen (compared with segment loss of 51 million yen one year earlier).
- Financial Position Assets
At the end of the first quarter of the current fiscal year, current assets totaled 56,828 million yen, a decrease of 3,255 million yen from the end of the previous fiscal year. The main factors include an increase of 781 million yen in costs on construction contracts in progress, and decreases of 2,456 million yen in notes receivable, accounts receivable from completed construction contracts and other, and of 1,879 million yen in cash and deposits. Non-current assets totaled 27,345 million yen, an increase of 2,997 million yen from the end of the previous fiscal year. The main factors include increases of 1,590 million yen in investment securities and 1,253 million yen in property, plant and equipment.
As a result, total assets decreased 258 million yen to 84,174 million yen.
Liabilities
At the end of the first quarter of the current fiscal year, current liabilities totaled 15,645 million yen, a decrease of 1,311 million yen from the end of the previous fiscal year. The main factors include decreases of 853 million yen in notes payable, accounts payable for construction contracts and other and 579 million yen in income taxes payable. Non-current liabilities totaled 4,079 million yen, an increase of 471 million yen. The main factors include an increase of 466 million yen in deferred tax liabilities.
As a result, total liabilities decreased 839 million yen to19,724 million yen.
Net assets
At the end of the first quarter of the current fiscal year, net assets totaled 64,449 million yen, an increase of 581 million yen from the end of the previous fiscal year. This was mainly due to increases of 1,271 million yen in profit attributable to owners of parent and 1,119 million yen in valuation difference on available-for-sale securities, and a decrease of 2,007 million yen due to dividends of surplus.
Consequently, the capital adequacy ratio was 76.0% (compared with 75.1% at the end of the previous fiscal year).
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Meisei Industrial Co., Ltd.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Statements
The Company maintains its consolidated forecasts for the first half and full year of the fiscal year ending on March 31, 2025 that were announced on May 10, 2024.
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and actual results may differ due to various factors. We will make an announcement promptly if there is a need to revise this forecast.
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Meisei Industrial Co., Ltd.
2. Quarterly Consolidated Financial Statements and Notes
- Quarterly Consolidated Balance Sheets
(Millions of yen) | ||
As of March 31, 2024 | As of June 30, 2024 | |
Assets | ||
Current assets | ||
Cash and deposits | 31,390 | 29,511 |
Notes receivable, accounts receivable from | 26,544 | 24,087 |
completed construction contracts and other | ||
Securities | 300 | 300 |
Costs on construction contracts in progress | 536 | 1,318 |
Merchandise and finished goods | 337 | 420 |
Raw materials and supplies | 196 | 179 |
Other | 783 | 1,016 |
Allowance for doubtful accounts | (4) | (3) |
Total current assets | 60,083 | 56,828 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures | 10,290 | 10,808 |
Machinery and vehicles | 5,064 | 5,115 |
Land | 11,433 | 11,433 |
Other | 4,182 | 5,047 |
Accumulated depreciation | (14,215) | (14,396) |
Total property, plant and equipment | 16,754 | 18,008 |
Intangible assets | 92 | 205 |
Investments and other assets | ||
Investment securities | 4,812 | 6,402 |
Investment property | 1,915 | 1,903 |
Retirement benefit asset | 360 | 402 |
Deferred tax assets | 79 | 109 |
Other | 449 | 362 |
Allowance for doubtful accounts | (116) | (49) |
Total investments and other assets | 7,501 | 9,131 |
Total non-current assets | 24,348 | 27,345 |
Total assets | 84,432 | 84,174 |
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Meisei Industrial Co., Ltd.
(Millions of yen) | ||
As of March 31, 2024 | As of June 30, 2024 | |
Liabilities | ||
Current liabilities | ||
Notes payable, accounts payable for construction | 9,180 | 8,327 |
contracts and other | ||
Accounts payable - trade | 283 | 289 |
Current portion of long-term borrowings | 700 | 700 |
Income taxes payable | 1,234 | 654 |
Contract liabilities | 2,537 | 2,052 |
Provision for bonuses | 518 | 822 |
Provision for bonuses for directors (and other | 67 | － |
officers) | ||
Provision for warranties for completed | 56 | 55 |
construction | ||
Other | 2,377 | 2,743 |
Total current liabilities | 16,956 | 15,645 |
Non-current liabilities | ||
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors (and other officers)
Provision for share awards for directors (and other officers)
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
100 | 100 |
133 | 162 |
146 | 196 |
100 | 107 |
2,260 | 2,727 |
483 | 483 |
16 | 16 |
366 | 286 |
3,607 | 4,079 |
20,564 | 19,724 |
6,889 | 6,889 |
1,000 | 1,000 |
55,739 | 55,003 |
(4,201) | (4,202) |
59,426 | 58,690 |
1,738 | 2,858 |
958 | 958 |
1,008 | 1,187 |
253 | 246 |
Total accumulated other comprehensive income | 3,960 | 5,251 |
Non-controlling interests | 480 | 507 |
Total net assets | 63,868 | 64,449 |
Total liabilities and net assets | 84,432 | 84,174 |
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Meisei Industrial Co., Ltd.
- Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income (cumulative)
(Millions of yen) | ||
Three months ended | Three months ended | |
June 30, 2023 | June 30, 2024 | |
Net sales of completed construction contracts | 12,534 | 14,812 |
Cost of sales of completed construction contracts | 10,511 | 11,991 |
Gross profit on completed construction contracts | 2,022 | 2,821 |
Selling, general and administrative expenses | 1,210 | 1,294 |
Operating profit | 812 | 1,526 |
Non-operating income | ||
Interest income | 22 | 30 |
Dividend income | 90 | 119 |
Rental income from real estate | 56 | 57 |
Foreign exchange gains | 12 | 87 |
Other | 28 | 42 |
Total non-operating income | 211 | 337 |
Non-operating expenses | ||
Interest expenses | 1 | 1 |
Rental costs on real estate | 32 | 35 |
Other | 5 | 4 |
Total non-operating expenses | 39 | 41 |
Ordinary profit | 984 | 1,822 |
Profit before income taxes | 984 | 1,822 |
Income taxes - current | 318 | 575 |
Income taxes - deferred | (150) | (53) |
Total income taxes | 167 | 522 |
Profit | 816 | 1,300 |
Profit attributable to non-controlling interests | 12 | 29 |
Profit attributable to owners of parent | 804 | 1,271 |
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Meisei Industrial Co., Ltd.
Quarterly Consolidated Statements of Comprehensive Income (cumulative)
(Millions of yen) | ||
Three months ended | Three months ended | |
June 30, 2023 | June 30, 2024 | |
Profit | 816 | 1,300 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | 192 | 1,119 |
Foreign currency translation adjustment | 35 | 178 |
Remeasurements of defined benefit plans, net of tax | (4) | (7) |
Total other comprehensive income | 224 | 1,290 |
Comprehensive income | 1,040 | 2,591 |
Comprehensive income attributable to | ||
Comprehensive income attributable to owners of | 1,028 | 2,561 |
parent | ||
Comprehensive income attributable to non- | 12 | 29 |
controlling interests | ||
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