Japan Business Systems (5036 JP) - Cloud Integration Profitability Recovering in FY25/9

479 Views07 Mar 2025 21:29

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SUMMARY

For FY25/9, JBS is forecasting OP to increase +24.1% YoY (OPM 3.3% → 3.8%), in large part driven by a recovery in profitability for Cloud Integration including NEXTSCAPE, addressing rectification of unit prices and NEXTSCAPE project delays which depressed GPM, and also recouping leading investment in personnel, new HQ, etc.
Q1 FY25/9 consolidated net sales increased +7.9% YoY, operating profit +61.7%, and profit attributable to owners of parent +96.9%.
Profitability improved sharply, where Q1 GPM rose 1.8pp from 13.4% → 15.2%, the ratio of SG&A expenses declined 0.4pp from 8.8% → 8.4%, and OPM increased 2.3pp from 4.5% → 6.8%, in large part due to the recovery in profitability of Cloud Integration business, which accounted for nearly two-thirds of the total increase in consolidated OP, a solid result kicking off the new fiscal year.

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