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Ichikoh Industries : Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022



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Consolidated Financial Resultsfor the Third Quarter of the Fiscal Year Ending December 31, 2022

November 14, 2022

ICHIKOH INDUSTRIES, LTD.

Tokyo Stock Exchange 7 2 4 4

http://www.ichikoh.com/

Christophe Vilatte, President, CEO, Representative director

Masaki Takamori, GM of Cooperate Planning Department

TEL: (0463) 96-1442

Filing of Quarterly Financial Report: November 14, 2022

Date for starting dividends payment: –

Quarterly earnings supplementary explanatory documents: No

Quarterly earnings presentation: No

*Amounts under one million yen have been rounded down.

1Performance at the end of the Third Quarter as of September 30, 2022 (January 1, 2022 to September 30, 2022)

(1) Consolidated Financial Results

(Millions of yen; percentage figures indicate year-on-year change)

Net Sales

Operating Income

Ordinary Income

quarterly net income (loss)

attributable to the shareholder

parent company

%

%

%

%

3rd Quarter (ended on Sep. 30, 2022)

98,457

5.8

2,543

45.4

3,258

42.0

2,214

42.8

3rd Quarter (ended on Sep. 30, 2021)

93,072

17.2

4,659

934.5

5,614

371.3

3,871

(Note)

Comprehensive income:

Sep. 30, 2022

4,679 million yen

(11.7)

Sep. 30, 2021

5,296 million yen

( –)

Net income per share

Net income per share-

(Yen)

diluted (Yen)

3rd Quarter (ended on Sep. 30, 2022)

23.04

3rd Quarter (ended on Sep. 30, 2021)

40.28

(2) Consolidated Financial Position

(Millions of yen; except for per share figures)

Total Assets

Net Assets

Equity Ratio (%)

%

3rd Quarter (as of Sep. 30, 2022)

120,625

54,245

44.4

FY2021(as of Dec. 31, 2021)

112,521

49,402

43.4

[Reference] Equity: Third Quarter as of Sep. 30, 2022

53,502 million yen

Fiscal Year as of Dec. 31, 2021

48,799 million yen

2. Cash Dividends

Cash Dividends per share (Yen)

(Cut-off Date)

1st Quarter

2nd Quarter

3rd Quarter

Year-End

Full Year

FY2021 (ended on Dec. 31, 2021)

3.50

3.50

7.00

FY2022 (ended on Dec. 31, 2022)

4.50

FY2022 (ended on Dec. 31, 2022) [plan]

4.50

9.00

Note: Revision to previous dividend forecast : No

3. Consolidated Performance Forecasts for the Fiscal Year 2022 (January 1, 2022 to December 31, 2022)

(Millions of yen; percentages indicate changes over the same period in the previous fiscal year)

Net Sales

Operating Income

Ordinary Income

net income (loss) attributable to the

Net Income

shareholder parent company

per Share (Yen)

%

%

%

%

yen

Full Year

132,900

5.9

3,700

33.5

4,500

30.8

3,100

22.2

32.25

Note: Revision to previous consolidated performance forecast : No

4. Other

(1) Principal affiliates’ transfer in this fiscal term (in accordance with the change of consolidation

No

Added

(Corporate name)

Excluded

(Corporate name)

  1. Application of simple accounting as well as specific accounting for preparing The quarterly consolidated financial statements: Applied
  2. Changes in accounting policies, changes in accounting estimates, and restatement
    • Changes in accounting policies due to revisions to accounting standard: Yes

    Changes in accounting policies due to other reasons: No

    Changes in accounting estimates: Yes

    Restatement: No

  3. Number of issued shares (common stock)
    • Number of shares outstanding at the end of the period (including treasury stock)

As of September 30, 2022

96,292,401

As of December 31, 2021

96,292,401

  • Number of shares of treasury stock at the end of period

As of September 30, 2022

179,159

As of December 31, 2021

176,543

  • Average number of shares during the period (cumulative)

FY2022 3rd quarter:

96,114,965

FY2021 3rd quarter:

96,122,668

*Quarterly review procedures:

This quarterly financial flash report is out of scope of the review procedures by certified public accountants or auditing firms

*Appropriate use of business forecast; other special items:

Performance Forecasts are based on judgments and estimated that have been made on the basis of currently available information. Change in the company’s business environment and in market trends may cause actual result to differ materially from these forecast figures.

1. Qualitative Information on Quarterly Results

(1)Analysis of operating results

In the Japanese economy for the cumulative third quarter, domestic corporate price rose and business confidence in the manufacturing industry deteriorated due to the surge in resource prices affected by historical yen depreciation and the situation in Ukraine, but production partially recovered and corporate earnings generally improved while some weaknesses are seen. With the alleviation of activity restrictions, the crowd is growing, personal consumption is gradually improving and inbound demand is expected due to relaxation of immigration restrictions.

As for the global economy, the economy in the United States gradually recovered even in the concern over downside risks due to monetary tightening. In China, although there were concerns about trends in the real estate market and the impact of restrained economic activity, the economy showed signs of recovery. In ASEAN, although the rising price was an important concern, the activity restrictions due to the COVID-19 pandemic were alleviated and it contributed to an increase in consumption. In particular, economic stimulus packages in Thailand underpinned consumption and the demand for coal from outside the region increased in Indonesia, and the economy was generally on a recovery trend including Malaysia.

The automotive industry to which the company group belongs, due to the impact on the supply chain caused by the Chinese government’s tightening of restrictions on activities, automotive production volume in Japan slightly decreased compared year-on-year in the consolidated cumulative period of the third quarter of this fiscal year. Automotive production volume in China increased year-on-year due to the rebound from production cutback of last year and in ASEAN, Thailand, Malaysia and Indonesia each had a significant year- on-year growth, resulting in a significant year-on-year increase in the total of the three countries. Automotive production volume in China increased year-on-year due to the rebound from production cutback of last year and in ASEAN, Thailand, Malaysia and Indonesia each had a year-on-year growth, resulting in a significant year-on-year increase in the total of the three countries.

Under these circumstances, the domestic sales decline rate for the Company as a non-consolidated for the cumulative third quarter was greater than that of our mainstay Japanese market. However, sales increase rate for the overseas subsidiaries mainly in ASEAN significantly exceeded the market growth rate on an automotive production volume basis and sales increased to 98,457 million yen (up 5.8% year-on-year) on a consolidated basis. Despite cost reductions and productivity improvements, the operating income was 2,543 million yen (down 45.4% year-on-year) due to the effects of the exchange rates and soaring raw material costs and energy prices, and ordinary income was 3,259 million yen (down 42.0% year-on-year) due to the allocation of investment income of 1,084 million yen by equity method, etc., and net income attributable to the parent company was 2,215 million yen (down 42.8 year-on-year).

Results by each segment are as follows:

1. Auto-Components business

Domestic sales decline rate for the Company as a non-consolidated was greater than that of our mainstay Japanese market. However, sales increase rate for the overseas mainly in ASEAN significantly exceeded the market growth rate on an automotive production volume basis and sales was 93,173 million yen (up 6.4 year-on-year). Despite cost reductions and productivity improvements, the operating income was 2,292 million yen (down48.3% year-on-year) due to the effects of the exchange rates and soaring raw material costs and energy prices.

2. After-Market business

In the after-market business, sales was 6,426 million yen (up 6.5% year-on-year) due to strong sales of winter wipers and dealer options and internet sales, and operating income was 246 million yen (up 41.6% year-on-year) due to the termination of liquidation of a U.S. after-market sales subsidiary while expenses for sales promotion and logistics increased.

In the previous consolidated fiscal year, the automotive light bulb manufacturing and sales business, which was included in “Other,” was abolished from the “Other” category from the first quarter of this fiscal year by the sale of the such business. As a result, from the consolidated cumulative period of the first quarter of this fiscal year, the segments became two segments: “Auto-Components business” and “After-Market business”.

In addition, from the beginning of the consolidated accounting period for the first quarter of this fiscal year, “Accounting Standards for Revenue Recognition” (Corporate Accounting Standards No. 29, March 31, 2020, hereafter “Revenue Recognition Accounting Standard”), etc., is applied, and the figures related to the third quarter of the fiscal year ending December 31, 2022 are figures after applying such accounting standards, etc. Also, each type of increase/reduction figures and rates are also calculated by comparisons with the figures after such accounting standards, etc. is applied.

The application of the Revenue Recognition Accounting Standards, etc. is in accordance with the

transitional treatment set forth in the proviso to Paragraph 84 of the Revenue Recognition Accounting Standards, and the cumulative impact of retrospectively applying the new accounting policy before the beginning of the first

quarter consolidated accounting period is adjusted to the retained earnings at the beginning of the first quarter of this fiscal year

As a result, the sales for the consolidated cumulative period of the third quarter of this fiscal year decreased by 2,156 million yen, cost of sales decreased by 1,509 million yen, and operating income, ordinary income and net income before income taxes and other adjustments decreased by 647 million yen. In addition, the retained earnings balance increased by 1,031 million yen.

3Analysis of forward-looking information such as cumulative performance forecast

The forecast for consolidated results for FY2022 have not been changed from the forecast announced on October 19, 2022.

The forecasted statements such as performance forecast shown in these materials are based on information currently available that the Company regards as reasonable; and therefore, actual performance may differ due to numerous factors.

2. Consolidated Financial Statement

(1) Consolidated Balance Sheets

(Millions of yen)

Previous Fiscal Year End

Third Quarter End

(As of December 31, 2021)

(As of September 30, 2022)

Assets

Current assets

Cash and deposits

5,720

7,698

Notes and accounts receivable-trade

19,091

Notes and accounts receivable – trade, and contract assets

28,183

Electronically recorded monetary claims-operating

373

145

Merchandise and finished goods

5,475

6,115

Work in process

646

2,820

Raw materials and supplies

4,771

6,356

Other

12,099

5,891

Allowance for doubtful accounts

(19)

(23)

Total current assets

48,160

57,188

Noncurrent assets

Property, plant and equipment

Buildings and structures, net

12,248

12,772

Machinery, equipment and vehicles, net

17,793

17,639

Tools, furniture and fixtures, net

6,607

2,522

Land

2,757

2,796

Lease assets, net

2,196

2,697

Construction in progress

3,749

3,286

Total property, plant and equipment

45,352

41,714

Intangible assets

Other

995

1,015

Total intangible assets

995

1,015

Investments and other assets

Investment securities

1,373

1,983

Long-term loans receivable

1,270

1,130

Deferred tax assets

4,486

4,114

Other

10,891

13,481

Allowance for doubtful accounts

(7)

(4)

Total investments and other assets

18,013

20,705

Total noncurrent assets

64,360

63,436

Total assets

112,521

120,625

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Disclaimer

Ichikoh Industries Ltd. published this content on 14 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 08:01:04 UTC.

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All news about ICHIKOH INDUSTRIES, LTD.

Sales 2022 133 B
957 M
957 M
Net income 2022 4 293 M
30,8 M
30,8 M
Net Debt 2022 18 185 M
131 M
131 M
P/E ratio 2022 9,31x
Yield 2022 2,00%
Capitalization 39 984 M
287 M
287 M
EV / Sales 2022 0,44x
EV / Sales 2023 0,41x
Nbr of Employees 3 519
Free-Float 37,1%

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Mean consensus OUTPERFORM
Number of Analysts 1
Last Close Price 416,00 JPY
Average target price 420,00 JPY
Spread / Average Target 0,96%




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